India Inc. set for 9.1% salary hikes in 2027: What the numbers reveal, and are projections too optimistic?

Aon’s survey of more than 1,200 Indian employers projects average salary increases of 9.1% in 2027, led by non-banking finance, energy and real estate. Attrition rose to 18% in 2026, while AI adoption and demand for specialised skills grew. Most employers are preparing for Wage Code compliance.

How much of a pay hike are you expecting in 2027? India Inc. is projecting a 9.1% salary increase, with some sectors likely to offer bigger raises. Here's what Aon's Annual Salary Increase and Turnover Survey for India 2026-27, released on October 14, reveals

The 33rd edition of the survey analysed data from more than 1,200 organisations across 45 industries.

What did the survey say about the salary hike?

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

However, salary increase projections vary by industry. For example, 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."

Salary hike projections far from reality?

But the ground reality seems totally different.

While the survey projects an average of 9.1% for 2027, Zoho founder Sridhar Vembu has a different message for his employees: no hike this year.

Citing soaring server costs, rising AI expenses and global uncertainty, Vembu wrote on social media that these are really tough times for software jobs, and they are trying to avoid large-scale workforce reductions. “We will work hard to avoid mass lay-offs,” he writes.