Indian Companies Project 9.1% Salary Increase for 2027
Indian employers plan to raise salaries by 9.1% in 2027 as competition for AI talent and Wage Code compliance drive costs.
Indian companies are projected to increase salaries by an average of 9.1% in 2027, according to the Annual Salary Increase and Turnover Survey for India 2026-27 conducted by Aon plc. Non-banking financial companies lead the growth at 10.1%, followed by energy at 9.9% and real estate and infrastructure at 9.8%. Technology consulting and services are expected to see the lowest increases at 6.6%.
The survey of over 1,200 organizations indicates intensifying competition for talent, with employee attrition rising to 18% in 2026 from 16.2% in 2025. This competition is particularly acute in specialized fields; pay premiums for roles in AI, machine learning, and data science have risen by approximately 10% since 2025.
Financial pressures also stem from regulatory changes, as 42.8% of employers anticipate payroll cost increases of at least 1% to comply with the Wage Code. Despite these costs, business sentiment remains positive, with 60% of companies expecting revenue growth to exceed 5% in 2026-27. Roopank Chaudhary noted that strong domestic consumption and export growth support this confidence, while Amit Kumar Otwani observed that while Wage Code readiness is encouraging, compliance is only the first step.
