Corporate India Forecasts 9.1% Salary Increase for 2026
Synopsis
Corporate India is gearing up for an average salary hike of 9.1% in 2026, with GCCs leading the charge. This shift highlights the growing importance of skills-based compensation in today's job market, as detailed in EY India's report.
Key Takeaways
Projected average salary increase of 9.1% in 2026 .
Global Capability Centres to lead with 10.4% increments.
Financial services sector to see hikes of 10% .
Overall attrition decreased to 16.4% .
Shift towards skills-based compensation is evident.
New Delhi, Feb 23 (NationPress) Corporate India is poised to implement an average salary increase of 9.1% in 2026, with Global Capability Centres (GCCs) spearheading this pay growth, according to a recent report released on Monday.
GCCs are projected to offer the most substantial increments at 10.4%, fueled by robust global demand for digital and technological expertise, as outlined in the latest Future of Pay report by EY India.
The financial services sector is anticipated to experience salary hikes of approximately 10%, followed closely by e-commerce at 9.9% and life sciences and pharmaceuticals at 9.7%, as indicated by the report.
The document also noted a gradual decline in attrition rates. Overall attrition fell to 16.4% in 2025, down from 17.5% in 2024, signifying a more stable job environment.
However, over 80% of exits remain voluntary, suggesting employees continue to seek better opportunities rather than leaving due to layoffs.
The financial services sector reported the highest attrition rate at 24%, while the professional services and hi-tech IT sectors also exhibited elevated levels.
In contrast, GCCs displayed relatively lower attrition rates at 14.1%, according to the report.
Abhishek Sen, Partner and Leader of Total Rewards, HR Technology, and Learning at EY India, remarked that organizations are reconsidering their talent investment strategies.
“The future of pay is shifting away from merely focusing on annual increments to recognizing the right skills for rewards and balancing competitiveness with long-term sustainability,” he emphasized.
The report indicates a significant transition towards skills-based compensation. Nearly half of the surveyed organizations are moving from traditional role-based pay systems to skill-based frameworks.
Professionals skilled in artificial intelligence, generative AI, machine learning, cybersecurity, and cloud computing can expect salary premiums ranging from 30% to 40%, as these competencies are becoming vital for business expansion.
The importance of variable pay is also on the rise. The average variable pay as a percentage of fixed salary increased to 16.1% in 2025, compared to 14.8% the previous year.
Point of View
The projected salary increase reflects Corporate India's ongoing adaptation to market demands, emphasizing the need for skill-based compensation. This shift is not just beneficial for employees but essential for sustaining competitive growth in a rapidly evolving economic landscape.
NationPress
9 May 2026
Frequently Asked Questions
What is the average salary hike projected for 2026?
Corporate India is projected to implement an average salary increase of 9.1% in 2026.
Which sector is expected to lead in salary increments?
Global Capability Centres (GCCs) are anticipated to offer the highest increments at 10.4%.
How has attrition changed according to the report?
Overall attrition declined to 16.4% in 2025 from 17.5% in 2024, indicating a more stable job market.
What skills are being rewarded in the current job market?
Skills in artificial intelligence, machine learning, and cybersecurity can command salary premiums of 30% to 40%.
What is the trend in variable pay?
The average variable pay as a share of fixed salary rose to 16.1% in 2025, indicating its growing importance.
