New Delhi: Salary increments across India Inc are expected to remain largely stable in 2026, with average hikes projected at 9.1 per cent, slightly higher than the 9 per cent increase recorded in 2025, a new report said on Monday.
The “Deloitte India Talent Outlook 2026” report by Deloitte, based on a survey conducted earlier this year across multiple sectors, indicated that companies are now settling into a steady pattern of annual pay increases after the sharp fluctuations seen during and after the pandemic.
The report suggested that organisations are becoming more cautious in their compensation strategies, focusing on productivity and targeted skill development rather than aggressive salary hikes.
Experts noted that the job market has shifted in favour of employers in many sectors, leading to more measured decisions on pay and hiring.
At the same time, companies are tightening their performance evaluation systems. The proportion of employees receiving top ratings has declined.
Only about 7 per cent of employees received the highest rating in 2025, down from 10 per cent in the previous year, while a larger share of the workforce is now placed in lower performance categories.
Despite this, promotion rates have improved. Around 14 per cent of employees were promoted in 2025, compared to 12 per cent in 2024, with higher promotions seen in manufacturing and operations-heavy sectors.
Attrition levels have remained relatively stable, rising slightly to 17.6 per cent in 2025 from 17.4 per cent a year earlier.
However, some sectors such as financial services witnessed a sharper increase in employee exits.
Sector-wise, salary increments are expected to vary. Industries like pharmaceuticals, manufacturing, and renewable energy are likely to offer higher-than-average hikes, in some cases crossing 10 per cent.
Financial services are also expected to see moderate growth in increments.
On the other hand, the technology sector is witnessing some moderation. IT services firms are projected to offer lower increments compared to last year, amid slower hiring and the impact of automation and artificial intelligence.
Companies are increasingly focusing on specialised skills rather than large-scale hiring.
(IANS)
