Quick answer: Aon's Annual Salary Increase and Turnover Survey for India 2026-27, released on 14 October 2026, projects an average salary increase of 9.1% in 2027, against an actual 9% in 2026. NBFCs lead at 10.1%, followed by energy at 9.9%; technology consulting and services is lowest at 6.6%. Attrition rose to 18% in 2026. Under the Wage Code, part of any hike may go into PF and gratuity rather than monthly pay: in our example, only about 54% of a 9.1% CTC hike reaches pre-tax monthly pay when basic pay is also moved to 50% of CTC.
Appraisal letters for 2027 will start arriving from January. The headline figure from the survey season is 9.1%, but the number that matters to an employee is how much more arrives in the bank each month. This guide sets out Aon's industry-wise projections, what they mean in rupees, and why this year's hike may look smaller on the payslip than in the letter.
What the survey found
Last updated: 3 November 2026. Figures are from Aon's press release of 14 October 2026. The survey covered more than 1,200 organisations across 45 industries; projections are employers' budgets, not guaranteed hikes.
- Average projected hike for 2027: 9.1%, against an actual 9% in 2026.
- Attrition: 18% in 2026, up from 16.2% in 2025 and 17.1% in 2024.
- AI: established use of AI productivity tools rose from 46.1% of employers in 2025 to 56%, and pay premiums for AI, machine learning and data science roles rose by about 10%.
- Wage Code: 65.4% of employers say they are already compliant and 20.9% expect to be within six months; 42.8% expect payroll costs to rise by at least 1%.
Source: Aon press release, 14 October 2026.
Salary hike 2027 by industry
| Industry | Actual 2026 | Projected 2027 | Change |
|---|---|---|---|
| Non-banking financial companies | 9.6% | 10.1% | +0.5 |
| Energy (oil, gas, power) | 9.7% | 9.9% | +0.2 |
| Real estate / infrastructure | 10.3% | 9.8% | −0.5 |
| Funds and asset management | 9.4% | 9.6% | +0.2 |
| Life sciences | 9.5% | 9.6% | +0.1 |
| Automotive / vehicle manufacturing | 9.7% | 9.5% | −0.2 |
| Engineering design services | 9.6% | 9.5% | −0.1 |
| Technology platform and products | 9.5% | 9.5% | 0 |
| Global capability centres | 9.3% | 9.4% | +0.1 |
| Retail | 8.9% | 9.4% | +0.5 |
| Wealth | 9.2% | 9.4% | +0.2 |
| Engineering / manufacturing | 9.5% | 9.3% | −0.2 |
| Fast-moving consumer goods | 9.0% | 9.1% | +0.1 |
| Banking | 8.6% | 8.5% | −0.1 |
| Life insurance | 8.3% | 8.4% | +0.1 |
| Chemicals | 8.1% | 8.0% | −0.1 |
| Technology consulting and services | 6.6% | 6.6% | 0 |
| Overall India | 9.0% | 9.1% | +0.1 |
Two points stand out. Technology consulting and services, a major employer in cities such as Bengaluru, Pune and Hyderabad, is projected at 6.6%, well below every other sector. Global capability centres and product companies, by contrast, sit near the national average.
What these hikes mean in rupees
On an annual CTC of ₹10 lakh, the gap between sectors is easier to see in money:
| Hike | Sector example | Extra CTC a year | Extra CTC a month |
|---|---|---|---|
| 6.6% | Technology consulting and services | ₹66,000 | ₹5,500 |
| 9.1% | India average | ₹91,000 | ₹7,583 |
| 10.1% | NBFCs | ₹1,01,000 | ₹8,417 |
These are CTC figures. The amount that reaches your bank account each month is smaller, and this year it may be noticeably smaller, as the next section shows.
Why your hike may look smaller on the payslip
Under the Code on Wages, basic pay and the other items counted as "wages" must make up at least 50% of total remuneration. Employers that restructure salaries to meet this rule often do so at appraisal time, and Aon's Wage Code readiness figures show most are already making the change. A higher basic raises PF contributions on both sides and the gratuity provision, all of which come out of the same CTC.
Illustration: CTC of ₹10 lakh with basic at 40%, a 9.1% hike to ₹10.91 lakh, and two scenarios.
| Item (annual) | Before hike (basic 40%) | After hike, basic still 40% | After hike, basic moved to 50% |
|---|---|---|---|
| CTC | ₹10,00,000 | ₹10,91,000 | ₹10,91,000 |
| Basic pay | ₹4,00,000 | ₹4,36,400 | ₹5,45,500 |
| Employer PF (12% of basic) | ₹48,000 | ₹52,368 | ₹65,460 |
| Gratuity provision (basic × 15/26 ÷ 12) | ₹19,231 | ₹20,981 | ₹26,226 |
| Employee PF (12% of basic) | ₹48,000 | ₹52,368 | ₹65,460 |
| Pay before income tax (CTC − employer PF − gratuity − employee PF) | ₹8,84,769 | ₹9,65,283 | ₹9,33,854 |
| Increase in pay before tax | – | ₹80,514 (88.5% of the hike) | ₹49,085 (53.9% of the hike) |
The money is not lost. The difference goes into your PF account and your gratuity entitlement, both of which you receive later, and PF earns interest. But it does not reach your monthly pay. If your letter shows a 9% hike and your payslip rises by much less, check whether your basic pay has also been increased.
Assumptions in this illustration: PF calculated on the full basic pay rather than the statutory wage ceiling; gratuity provision at 15 days' basic for each year of service; no other CTC components change; income tax ignored. Your employer's structure may differ, for example if PF is restricted to the ₹25,000 wage ceiling. Test your own figures with the new labour code salary calculator and the salary hike calculator.
What to check in your 2027 appraisal letter
- 1. Hike on CTC or on gross?A percentage on CTC includes employer PF and gratuity; a percentage on gross or fixed pay usually means more cash.
- 2. Did basic change?Compare old and new basic. A larger jump in basic than in CTC usually means restructuring for the 50% wage rule.
- 3. Fixed versus variableCheck how much of the increase sits in variable pay, which depends on performance and is paid later.
- 4. Effective dateNote whether the hike applies from 1 January, 1 April or another date, and whether arrears are due.
See what your hike means in hand. Use the free salary hike calculator, the in-hand salary calculator and the new labour code salary calculator. No app, no download, no login.
Frequently asked questions
Is 9.1% the hike I will get?
No. It is the average of employers' projected budgets across 1,200 organisations. Individual hikes depend on your company, role, performance and market demand for your skills.
Why is technology consulting projected so much lower?
Aon's release reports the figure, 6.6% in both 2026 and 2027, but does not explain the reason. Across manufacturing and technology, it notes a modest rise in non-merit adjustments for scarce skills and critical talent, so specialists may see more than their sector's average.
Can my employer reduce my take-home pay when restructuring for the Wage Code?
Moving more of CTC into basic pay can reduce monthly cash even when CTC rises, as the example shows. Whether a reduction in take-home is permissible depends on your employment terms, so check your contract and raise it with HR if the change is not explained.
Do other surveys project similar hikes?
For 2026, surveys by Aon, Mercer, EY and Deloitte all clustered around 9%. Other 2027 surveys are usually released between November and February; this guide will be updated as they appear.
Related: new labour codes for IT employees and PF wage ceiling ₹25,000.
Position as of 3 November 2026. Source: Aon Annual Salary Increase and Turnover Survey for India 2026-27, press release of 14 October 2026. The take-home illustration is HR Calcy's calculation on the stated assumptions and is not a prediction of any employer's practice. General information, not financial advice.