India salary hike 2026 will average 9.1% across the corporate sector, according to NDTV Profit — “India Inc To Award 9% Salary Hike In 2026, Finds EY Report — Sectoral Breakup Inside,” published on February 23, 2026. The EY Future Pay Report 2026 outlines sectoral trends, attrition data, and evolving compensation models shaping workforce planning.
What changed in India salary hike 2026
The EY Future Pay Report 2026 indicates a shift toward structured pay planning. Companies now align increments with skills, outcomes, and long-term workforce sustainability. As a result, India salary hike 2026 reflects calibrated growth rather than broad-based escalation.
Global Capability Centres salary hike projections lead all sectors at 10.4%. Financial services follow at 10%, while e-commerce stands at 9.9%. Life sciences and pharmaceuticals record 9.7% increments.
Global Capability Centres salary hike and sectoral trends
Global Capability Centres salary hike figures reflect continued investment in digital and specialised capabilities. At the same time, attrition declined to 16.4% in 2025 from 17.5% in 2024. More than 80% of exits were voluntary.
Services posted the highest attrition at 24%, particularly in sales and digital roles. Professional services recorded 21.3%, while Hi-Tech and IT stood at 20.5%. In contrast, Global Capability Centres reported lower attrition at 14.1%.
Data, AI and skill premium in pay strategy
India salary hike 2026 trends also show growing reliance on analytics. Around 50–60% of large organisations now use data tools to guide compensation planning. AI adoption in rewards and learning functions has tripled over the past two to three years.
Up to 50% of firms are moving toward skill-based salary systems. Roles in AI, generative AI, machine learning, and engineering command a 40% skill premium. Meanwhile, variable pay increased to 16.1% of fixed pay in 2025 from 14.8% in 2024.
Top performers now receive 120–150% of target payouts, while average performers earn 60–80%. India salary hike 2026 therefore aligns more closely with pay-for-performance structures.
The EY Future Pay Report 2026 signals continued evolution in compensation frameworks as organisations integrate analytics, skill premiums, and differentiated rewards into workforce strategy.
