India leads global salary hikes, with an average appraisal of 9.1 per cent projected for 2026, up from 8.9 per cent in 2025. The trend takes the country significantly higher than developed markets like the US (4.3 per cent) and UK (4.1 per cent), says Aon’s Salary Increase & Turnover Survey 2025-26.Driven by domestic demand, sectors like real estate, infrastructure, and financial services (NBFCs) lead with the highest hikes, while attrition has eased to 16.2 per cent, it says.However, tech consulting is surprisingly at the bottom. Technology consulting and IT services are experiencing lower salary hikes, nearing 6.8 per cent.According to the survey, junior employees are witnessing the highest salary increases (average 9.6 per cent), as firms focus on retention. Human resources experts say retaining juniors is cheaper than replacing them.“India’s job appraisal is far higher than other major economies, reflecting strong domestic sentiment despite global uncertainties. A 9-10 per cent raise is considered aligned with the national trend. Organisations are prioritising top talent, often offering much higher percentages for superior performance compared to average performers,” Roopank Chaudhary, partner and rewards consulting leader, Talent Solutions, India, Aon said.“Employees are also starting to prioritise meaningful pay progression, role clarity and performance recognition over aggressive job-hopping,” he added.The report also provides a sector-wise breakdown of salary increments for 2025 and projections for 2026. It states that automotive and vehicle manufacturing recorded an increase of 9.8 per cent in 2025, with projected growth of 9.9 per cent in 2026. This is followed by banking at 8.4 per cent, expected to rise to 8.8 per cent, and chemicals at 8.5 per cent with a projection of 8.8 per cent. The automotive, engineering and real estate sectors are leading this trend, with growth ranging between 9.9 per cent and 8.5 per cent.The survey shows that overall attrition declined to 16.2 per cent in 2025, returning close to pre-COVID-19 levels and continuing a downward trend over the past three years. Attrition stood at 17.7 per cent in 2024 and 18.7 per cent in 2023, indicating steady improvement in employee retention across industries.This normalisation reflects more targeted hiring practices and a greater emphasis on employee engagement, career mobility and workplace stability.“With India’s new labour codes, organisations are navigating one of the most significant regulatory transitions in decades. The standardised definition of wages and expanded social security provisions are prompting many employers to reassess and restructure compensation. Clear communication around these changes will be critical to maintaining workforce trust and stability,” said Amit Kumar Otwani, Associate Partner, Talent Solutions, India, at Aon.For employees and those entering the workforce in the coming years, this serves as a useful reference point for career growth. A salary increase of 9 per cent places individuals ahead of the national average, while increments around this range suggest alignment with broader corporate trends.On Labour Day, the survey underscores that appraisals are no longer about uniform raises, but increasingly about skills, sectors and strategy.