Salary hikes at India Inc to be steady at 9.1% this year: Report
Bengaluru: Salary increments at India Inc are expected to stabilise at about 9.1% in 2026, marginally higher than 9.0% last year, as companies focus on cost discipline, according to a report.
The Deloitte India Talent Outlook Survey projects the life sciences and manufacturing sectors to lead pay growth at 9.9% and 9.8%, respectively. Most other sectors, including consumer products, IT and financial services, are expected to see stable or positive trends. ITeS is the only sector likely to record a slight decline, with increments estimated at 8.5%.
The survey, based on responses from about 500 companies, points to a shift in increment budgets towards junior management and individual contributors, who are likely to receive the highest average raises of 9.7%.
" Salary increments in India have remained remarkably consistent in the 8.8% to 9.1% range over the past few years," Anandorup Ghose, partner, Deloitte India, told ET. "This year was expected to be better, but factors like increased wage costs due to labour codes and rising uncertainty around AI have tempered that optimism, keeping increments largely in line with previous trends."
He added that the impact of the Middle East conflict on corporate budgets remains uncertain.
The Deloitte India Talent Outlook Survey projects the life sciences and manufacturing sectors to lead pay growth at 9.9% and 9.8%, respectively. Most other sectors, including consumer products, IT and financial services, are expected to see stable or positive trends. ITeS is the only sector likely to record a slight decline, with increments estimated at 8.5%.
The survey, based on responses from about 500 companies, points to a shift in increment budgets towards junior management and individual contributors, who are likely to receive the highest average raises of 9.7%.
" Salary increments in India have remained remarkably consistent in the 8.8% to 9.1% range over the past few years," Anandorup Ghose, partner, Deloitte India, told ET. "This year was expected to be better, but factors like increased wage costs due to labour codes and rising uncertainty around AI have tempered that optimism, keeping increments largely in line with previous trends."
He added that the impact of the Middle East conflict on corporate budgets remains uncertain.
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