Aon Study Finds Salaries in India Projected to Rise 9.1% in 2027

NEW DELHI, Oct 2026 Aon plc (NYSE: AON), a leading global professional services firm, today released findings from its Annual Salary Increase and Turnover Survey for India 2026-27, which projects salaries in India will increase by 9.1% in 2027. Now in its 33rd year, the survey is one of India’s largest and most comprehensive rewards studies, analysing data from more than 1,200 organisations across 45 industries.

The projected salary increase of 9.1% for 2027 is broadly stable compared with the actual 9% increase in 2026. This reflects continued resilience in compensation budgets despite geopolitical uncertainty and global trade risks.

Salary increase projections vary by industry. Non-banking financial companies are projected to lead salary growth in 2027 at 10.1%, followed by energy at 9.9% and real estate and infrastructure at 9.8%.

“Strong domestic consumption, sustained investment and export growth continue to support business confidence, allowing employers to invest in talent while maintaining cost discipline,” said Roopank Chaudhary, Partner & Rewards Consulting Leader, Talent Solutions, India, Aon. “Stable salary budgets are enabling a more targeted approach to pay. A modest rise in non-merit adjustments, particularly in manufacturing and technology, reflects greater focus on market alignment, scarce skills and critical talent. Employers are increasingly focused not only on how much they spend, but where that investment can deliver the greatest workforce and business value.”

Overall attrition increased to 18% in 2026, compared with 16.2% in 2025 and 17.1% in 2024. The increase suggests competition for talent remains strong despite broadly stable salary budgets.

Alongside retention, employers are reshaping workforce strategies as AI becomes more deeply embedded in day-to-day work. Established adoption of AI productivity tools rose from 46.1% in 2025 to 56%, with usage increasing across every job cluster measured. Around 60% of employers are prioritising upskilling of employees, while investment in agentic AI and demand for AI skills continue to grow. Workforce priorities are evolving in parallel, with talent premiums for AI, machine learning and data science roles increasing by approximately 10% from 2025.