India Inc to hand out 9.1% raises in 2026

India Inc is poised to offer an average salary increase of 9.1% in 2026, with the real estate and non-banking financial companies (NBFCs) sectors leading the charge. This anticipated rise is seen as a response to a cooling attrition rate, which is projected to settle at 16.2%. The trend reflects a strategic shift in corporate India, where companies are focusing on retaining talent by offering competitive compensation packages. Industry experts suggest that these salary hikes are part of a broader effort to stabilize the workforce and maintain competitiveness in a rapidly evolving market. As attrition rates decline, organizations can redirect resources towards employee development and targeted recruitment strategies. This approach aims to foster a more committed and skilled workforce, which is crucial for sustaining growth and innovation across sectors. The real estate and NBFC sectors are expected to be at the forefront of this trend, driven by robust growth and increased demand for skilled professionals. These industries are leveraging salary increases as a tool to attract and retain top talent, ensuring they remain agile and responsive to market needs. As India Inc navigates these changes, the focus on strategic compensation is likely to set the tone for future workforce management practices.

— Authored by Next24 Live