Archive · 17 Dec 2025
India Inc. to Offer 9% Hikes in 2026
India Inc.
is expected to give salary increases of 9% in 2026.
Companies are focusing more on short-term incentives like bonuses and skills-based pay systems.
They are also making their pay systems more transparent.
The top factors influencing these salary increases include how well employees perform, inflation, and how competitive the company is in the job market.
Some industries, like high tech and automotive, are expected to give even higher raises.
Companies are also adjusting to new labour laws that improve social security and healthcare.
Overall, companies are trying to balance costs while keeping their employees happy and skilled.
India Inc. expected to offer 9% average salary increments in 2026.
Focus on short-term incentives and skills-based pay systems.
High Tech and Automotive industries expected to have the highest salary increases at 9.3% and 9.5% respectively.
IT/ITES and Global Capability Centers leading in innovative employee benefits.
New labour codes to tighten social security and preventive healthcare.
- Who
- India Inc. and employees
- What
- Expected salary increments for 2026
- When
- 2026
- Where
- India
- Why
- Balancing cost pressures, talent retention, and evolving workforce needs
Employers
Employees
Cost Management
Employers
Employers are focusing on cost efficiency and managing the number of employees eligible for increments.
Employees
Employees may expect higher increments and better benefits to match inflation and market competitiveness.
Incentives and Benefits
Employers
Employers are emphasizing short-term incentives and skills-based pay frameworks.
Employees
Employees may prefer long-term incentives and comprehensive benefits for job security and well-being.
- Average Increment Range
- 9%
- High Tech Salary Increase
- 9.3%
- Automotive Industry Salary Increase
- 9.5%
- IT/ITES/GCC Sector Focus
- Innovative and progressive employee benefits
- Survey Coverage
- 8,000+ roles, 1,500+ companies
- Key Influencing Factors
- Individual performance, inflation, competitiveness
- Short-term Incentives Focus
- Bonuses, performance alignment, cost efficiency
- Labour Codes Impact
- Tightening social security and preventive healthcare
Sources
Why your next appraisal won't be better than the previous one
India Set To Add 1.28 Crore Jobs In 2026 As Skills-Led Hiring Gains Pace
India Inc to see 9 pc salary growth in 2026, with focus on short-term incentives: Report
General staffing sees 5% q-o-q growth in Q2 FY26 on FMCG, e-commerce demand: ISF
India Inc projected to see 9 pc salary growth in 2026: Report
General staffing sees 5% q-o-q growth in Q2 FY26 on FMCG, e-commerce demand: ISF
Salaries In India To Rise By An Average Of 9% In 2026: Report
Average increase in salaries to be 9%, focus on short-term incentives
