Indian Economy News

India Inc to see 9% salary increments in 2026, with manufacturing, automotive sectors set for highest hikes

Based on a recent survey by Mercer Total Remuneration of over 1,500 firms, India Inc is likely to announce an average wage rise of 9% in 2026, keeping pace with last year's trend, signifying a certain level of confidence in the overall corporate setting. The Manufacturing & Engineering and Auto industry are likely to be at the forefront of this trend with 9.5% increments, and Global Capability Centres (GCC) are likely to announce 9% increments, signifying their aggressive pay strategy. A significant factor indicating a certain level of economic stability, despite global challenges, is a steady hike trend, where firms are consolidating their approach towards controlling costs and attempting to lure and retain employees in a moderately slowing job market. The survey emphasizes a steady trend of including performance pay and short-term Incentives in pay elements for retaining high-impact individuals in a moderately slowing job market.

Even though there are positive increments, there are some signs of moderation in terms of hiring intentions, as only around 32% of organizations are looking to increase their workforce by 2026. This is compared to other years. In addition, both voluntary and involuntary turnover rates are slowly stabilizing, and organizations are becoming more conservative in their approach when it comes to expanding their workforce. This is expected, as organizations are managing an economy under pressure by following disciplined compensation mechanisms and focusing on performance.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.