India Inc plans 9.1% salary rise in 2027 as employee turnover climbs to 18%

Aon's 2026-27 Salary Increase and Turnover Survey, covering more than 1,200 organisations, predicts that Indian employers will raise wages by 9.1% in 2027, a modest rise from the 9% increase recorded in 2026. The same study finds overall employee attrition climbing to 18% in 2026, up from 16.2% in 2025, with involuntary exits also increasing. Non-banking financial companies are expected to offer the highest pay growth at 10.1%, while technology consulting and services will remain at the low end with a 6.6% rise.

Sectors such as energy, real estate, infrastructure, funds, asset management and life sciences are projected to see pay hikes in the high-9% range. Employers are directing more resources toward AI-related upskilling and anticipate additional payroll costs from the new Wage Code, with many already compliant or planning compliance within six months.