India Inc set to deliver 9.1% average salary hikes in 2026, marking a significant shift toward skills-based compensation strategies. Global Capability Centres lead growth with 10.4% increments, followed by financial services at 10%, e-commerce at 9.9%, and lifesciences at 9.7%. The data reflects 178 companies across 16 sectors adapting to evolving business priorities. Employee attrition shows stabilization, declining to 16.4% in 2025 from 17.5% in 2024, with over 80% of exits remaining voluntary. Financial services faces highest attrition at 24%, while GCCs demonstrate greater stability at 14.1%. Companies increasingly adopt skill-based pay frameworks, with AI and emerging tech roles commanding premiums up to 40%. This represents a fundamental shift in how Indian organizations invest in talent, prioritizing precision in compensation over uniform increments.
