India Salary Increments Projected at 9.1% in 2026: GCCs and Financial Services May Lead Growth

Salaries in India are expected to rise by an average of 9.1 per cent in 2026, according to a compensation outlook study based on data from 178 companies across 16 sectors. The findings suggest continued wage resilience despite global economic uncertainties, with select sectors outperforming the broader market.

Global Capability Centres Expected to Lead Salary Growth

Global Capability Centres (GCCs) are projected to register the highest average salary increment at 10.4 per cent, positioning them as the strongest growth segment.

Financial services may follow closely with projected increments of around 10 per cent, while:

• E-commerce: 9.9%

• Life sciences & pharmaceuticals: 9.7%

The higher increments in GCCs reflect ongoing demand for digital, analytics, and product-based roles, particularly in multinational capability hubs operating from India.

Attrition Trends Show Signs of Stabilisation

A separate study by EY indicates that overall attrition declined to 16.4 per cent in 2025, compared to 17.5 per cent in the previous year. Most exits continue to be voluntary.

Sector-wise attrition levels remain elevated in certain industries:

• Financial services: 24%

• Professional services: 21.3%

• Hi-Tech and IT: 20.5%

• GCCs: 14.1%

The financial services sector, in particular, reported higher churn in sales, relationship management, and digital roles.

Shift Toward Skills-Based Pay and Premiums for Emerging Tech Roles

Compensation strategies are increasingly moving toward skills-based pay models, with nearly half of organisations adopting structured frameworks linking pay to critical competencies.

Emerging technology roles such as:

• Artificial Intelligence (AI)

• Generative AI

• Machine Learning

are reportedly commanding salary premiums of up to 40 per cent over standard benchmarks.

In addition, approximately 50–60 per cent of large organisations are leveraging workforce analytics to inform pay decisions and predict retention risks.

Evolution of Long-Term Incentive (LTI) Structures

Long-term incentive models are becoming more widespread across Indian corporates.

• Around 30% of companies operate multiple LTI schemes.

• ESOP adoption increased to 78% in 2025.

• Nearly three-quarters of NSE 200 companies now offer LTIs.

This reflects a broader strategic focus on retention and performance alignment, especially at senior leadership levels.

Executive Compensation Continues Upward Trend

Median CEO compensation among Nifty 200 companies reached approximately ₹7–9 crore in 2025, marking annual growth of 12–15 per cent.

CEO pay structures typically consist of:

• 25–30% fixed pay

• 25–30% short-term incentives

• 45–50% long-term incentives

Chief Operating Officers (COOs) and Chief Financial Officers (CFOs) remain the next highest-paid executive roles.

Labour Codes Prompt Structural Payroll Changes

India’s new Labour Codes are influencing compensation design and payroll structures. Organisations are:

• Reviewing wage definitions

• Upgrading payroll systems

• Developing internal communication strategies

• Assessing long-term cost implications

The shift may accelerate formalisation of pay structures and compliance-driven restructuring across sectors.