Indian Inc. reflects the world of economic disturbances and tense geopolitics and distributed the lowest salary increase in almost 15 years, with the exception of one year of pandemic in 2020. This signals of the Indian labor market with prospects do not look much more clear for the upcoming evaluation. Consultation companies also indicated that retapments on the back of artificial intelligence (AI), customs wars and global uncertainty have achieved five -year maximum this year.
“The additions we projected were soon of February March. That was before the impact of tariffs and unstable uncertainty … We expected that the number would be slightly lower than what it projected. But it was below 9%.
The Aon assumed an average increase of 9.2% for 2025, but a study of more than 1,060 companies in “salary survey and turnover survey 2025-26, India” showed that the actual hike was 8.9%. It is the lowest hike in 15 years, with the exception of 2020, when the pandemic intervention was announced, the locking was announced and the company was struggling with new strategies to maintain their businesses alive. Then the increase was about 6.1%. Now, however, hiring the tide is low due to the reduction of expenditure budgets after the departure of repressive tariffs to Indian US exports, prolonged global war and volatile economy across borders.
The actual wage growth, calculated by deducting the inflation rate from the increase in salary, reflects less additional income in employees pockets. As for AONA data, while in 2025 the salary increase was 8.9%, the actual wage growth – showing how much more you can buy with the salary – 4.7%after inflation.
After a thickened year for employees, the signals for 2026 are not much better. Although it is still the first days, the AON report will project the average salary increase of 9%next year, with non -banking financial companies, real estate and infrastructure, financial institutions are expected to offer their employees a better hike than other sectors.
Headhunters head also noted that the drastic decline in negotiations of candidates and some sectors are affected more than others. “The advisory sector can see more” pay for performance “and is increasingly distinguishing partners who have a strong personal position on the market. The compensatory increase at the level of partners in switching companies is usually about 20%, of approximately 40% during Post Covid Hey Days, ”said PUNEET KALRA, CEO for Russell Reysells Associates.
In fact, with almost 10 months a year, AONA data show that even if it is involuntary wear or postponement, the level of 4.6% is the highest of 5.1% of 2020, a pandemic year. With the total number of voluntary wear in the country over the past five years, it is clear that employees will rather remain in place than a jumping ship. Mint wrote in June about hesitation in the labor market because candidates feared that the last man would be the first man.
This is exactly the trend he has seen only a few years ago. Yo-yo-yo-yo was on the side of the candidate for several years in 2022 and 2023. During this period, the company disappeared talent when their businesses digitized and the workplace opened after the pandemic. Moonlighting and more job offers were received by the norm because employees changed their jobs at their required price.
Another powerful search company Korn Ferry has pointed out that in the last year the risk factor has slipped into compensation. “Although one can still get an addition of 20-30%, but in its compensation it is barely 60% fixed. About 40% is based on performance and stocks, and more companies have changed in this compensation structure,” said Singh, Chairman and Regional CEO in Korn Ferry, India.
While those junior levels can still be able to argue about a better hike around 30%, the middle and segments of segments may not be as happy. And it’s not just their trips; Even their roles can be divided. “The middle salary increase is now 17-22%, while the main officers of the experience (CXOS) in pharmaceutical products, production, Tech can gain a 20-25% increase during a job change,” said Pranshu Upiphyay, Regional Talent Director Michael Page. “There is also an interesting shift in the management of technology. Previously, there was one CTO (Chief Technology Director) in charge of the technique. Now there are two contributions – the CTO and the main officer of AI, which is the technology management of the organization.”
(tagstotranslate) hike
