SalaryHike – Corporate India Likely to See 9.1% Pay Rise in 2026
SalaryHike – Corporate India is projected to offer an average salary increase of 9.1 percent in 2026, indicating that pay growth is gradually returning to steadier levels after the volatility experienced during and immediately after the pandemic years. The findings come from the latest Future of Pay report released by EY India, which reviews compensation patterns and employee mobility across multiple sectors.
Global Capability Centres to Lead Pay Growth
Among various industries, Global Capability Centres are expected to record the strongest salary growth next year, with projected increments of about 10.4 percent. These centres, which handle technology, analytics, finance and other specialised operations for multinational companies, continue to attract global investments. The demand for digital capabilities and advanced technical skills is helping them stay ahead in the compensation cycle.
Financial Services companies are likely to follow closely, with anticipated salary hikes of around 10 percent. The sector remains competitive, especially as firms expand digital banking, fintech partnerships and customer-focused services. E-commerce businesses are also expected to offer increases nearing 9.9 percent, reflecting steady consumer demand and continued investments in technology-driven logistics and platforms.
Life Sciences and Pharmaceutical companies may see salary growth of roughly 9.7 percent. With ongoing research initiatives, regulatory expansion and global supply chain integration, these sectors continue to require highly skilled professionals.
Overall, industries connected to technology, digital transformation and global delivery frameworks appear set to remain at the forefront of salary growth in 2026.
Employee Attrition Shows Gradual Decline
The report also highlights a modest improvement in workforce stability. Attrition rates declined to 16.4 percent in 2025, compared to 17.5 percent the previous year. Although job changes remain common, the pace of movement has slowed slightly, suggesting that the intense churn witnessed in earlier post-pandemic years may be easing.
A significant majority of exits—over 80 percent—were voluntary. This indicates that most employees chose to leave in pursuit of better career prospects rather than being affected by job cuts or restructuring.
Financial Services reported the highest attrition rate at 24 percent. Roles in sales, relationship management and digital functions experienced particularly high turnover. Professional Services, Hi-Tech and IT sectors also recorded notable employee movement.
In contrast, Global Capability Centres demonstrated relatively lower attrition at 14.1 percent. This comparatively stable workforce environment may reflect structured career paths, competitive compensation and access to global projects.
Artificial Intelligence Influencing Pay Decisions
Artificial Intelligence is increasingly shaping how companies design compensation strategies. Between 50 and 60 percent of large organisations now rely on advanced data analytics tools to guide salary planning, bonus allocation and performance evaluation. Over the past few years, businesses have expanded the use of AI-powered systems to support both reward frameworks and employee learning initiatives.
Specialised roles in areas such as artificial intelligence, generative AI, machine learning and core engineering are commanding significant premiums in the job market. Professionals with expertise in these emerging technologies can earn up to 40 percent more than peers in conventional roles, underscoring the growing demand for digital talent.
Companies are also reassessing traditional compensation models to align rewards more closely with critical skills and measurable outcomes. This shift reflects a broader strategy of linking pay growth to productivity, innovation and long-term value creation.
A More Measured Compensation Cycle Ahead
While the expected 9.1 percent average salary increase in 2026 does not signal dramatic expansion, it points to a more balanced and structured compensation environment. After years marked by sharp hiring surges and sudden corrections, employers appear to be adopting a disciplined approach guided by data and business priorities.
At the same time, employees continue to prioritise transparency, equitable pay structures and clear career progression. As digital transformation deepens across sectors, companies are likely to focus on retaining specialised talent while managing overall cost structures responsibly.
The broader outlook suggests that India’s corporate salary landscape in 2026 will be defined less by abrupt swings and more by calibrated, skill-driven growth aligned with long-term workforce strategies.