India Tops The World In Salary Hikes: Aon Report 2025-26
According to a report by Aon, India stands out with the highest salary increases (on average) among major world economies.
Which Sectors Are Paying The Most?
- Infrastructure
- Manufacturing
- Engineering
- NBFCs (Non-Banking Financial Companies)
Why Tech Consulting Is At The Bottom?
As per Roushan Singh, senior software engineer, "Appraisal in IT domain is not symmetric across all companies. Where some companies are delaying hike due to AI trend, some companies are trying to retain talents with good hike. Generally, 10-15 per cent hike yearly is considered good in IT industry."
Salary Hikes For Different Performers
- Low performers: 2-4 per cent
- High performers: 6-10 per cent
- Exceptional performers: above 10 per cent
Juniors Get The Highest Average Hikes
According to HR experts, retaining juniors is cheaper than replacing them.
Attrition Level Is At Its Lowest Level In The Last Five Years
"Employees are starting to prioritise meaningful pay progression, role clarity and performance recognition over aggressive job-hopping," says Roopank Chaudhary, partner and rewards consulting leader, Talent Solutions, India, Aon.
What Is A "Good" Hike In 2026?
"8.5-10 per cent is broadly considered a good hike. Employees are looking at real purchasing power, not just numbers. Increments are becoming more differentiated," says Roopank Chaudhary.
ESOPs Are Entering Appraisal Conversations
Aarti Nabh, CHRO at M1xchange, says employees are asking a new question: "Not what is my increment, but what does the company's growth mean for me?"
Shift To Performance-Linked Pay
"Hikes are now tied to skills, productivity and business impact. The question is not 'how much', but 'for what'," says Balasubramanian A from TeamLease Services.
Increment Expectations
- Below 6%: likely performance flag or sector pressure
- 8-10%: you are in the national sweet spot
- Above 12%: you are in a high-demand role or high-growth firm
- 30%+: you probably switched jobs
On this Labour Day (May 1), the message is simple: Appraisals are no longer about uniform raises. They are about skills, sectors, and strategy. And sometimes, about knowing when to stay... and when to switch.