Aon's Annual Salary Increase and Turnover Survey has projected a 9.1% rise in Indian workers' pay for 2027, a figure unchanged from the 9% increase recorded in 2026. The survey, the country’s largest compensation study, analysed data from more than 1,200 organisations across 45 industries, underscoring a broad consensus that firms can afford modest hikes amid stable budgets.
Sector‑specific forecasts reveal that non‑banking financial companies (NBFCs) will lead with a 10.1% increase, followed closely by the energy sector at 9.9% and real‑estate and infrastructure at 9.8%. Attrition climbed to 18% in 2026 from 16.2% the year before, signalling growing churn even as firms tighten hiring.
The report also flags a sharp rise in artificial‑intelligence adoption: 56% of firms now use AI productivity tools, up from 46.1% last year, reshaping how talent is evaluated and compensated.
Roopank Chaudhary, Partner and Rewards Consulting Leader at Aon, said employers are “adopting a targeted approach to compensation” that balances cost discipline with the need to attract scarce skills. Amit Kumar Otwani, Associate Partner, added that the new Wage Code adds another layer of complexity that firms must navigate.
With the 9.1% hike in sight, companies are expected to roll out targeted salary plans early next quarter, focusing on high‑skill roles and AI‑enabled positions while managing attrition and regulatory compliance.