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Events / India's 2026 Salary Increment Forecast by EY
Business salary forecast

India's 2026 Salary Increment Forecast by EY

Analysis based on 8 articles · First reported Feb 23, 2026 · Last updated Feb 24, 2026

Sentiment
20
Attention
4
Articles
8
Market Impact
General
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Market Impact

The report from EY India provides a positive outlook for the Indian job market, with projected salary increases and stabilizing attrition rates. This suggests a healthy economic environment, which could be viewed favorably by investors in Indian equities.

Financial services E-commerce Life sciences
Event Summary

EY India's 'Future of Pay' report forecasts an average salary increase of 9.1% across Corporate India in 2026, with Global Capability Centres (GCCs) leading at 10.4%. The report highlights a gradual normalization of attrition, which declined to 16.4% in 2025, though voluntary exits remain high. A significant shift towards skills-based compensation is noted, with emerging tech roles commanding premiums of up to 40%. Variable pay is also gaining importance, and Long-Term Incentive Plans (LTIPs) are being strategically used for talent retention. Median CEO compensation in NIFTY 200 companies reached ₹7-9 crore in 2025, reflecting a strong performance-linked pay structure. The report also touches upon the impact of India's new Labour Codes on wage structures.

Key Actions
100 India projected to have 9.1% average salary increase
90 EY published 'Future of Pay' report
80 India experienced decline in attrition to 16.4%
Entities Involved
cnt
India
India's corporate sector is the primary focus of the 'Future of Pay' report, with projections for average salary increases, attrition rates, and evolving compensation strategies across its industries. The report highlights a stable job market and a shift towards skills-based pay within India.
Importance 100 Sentiment 20
priv
EY
EY India published the 'Future of Pay' report, which provides insights into salary increments, attrition trends, and compensation strategies across various sectors in India for 2026. This report positions EY as a key thought leader in human resources and compensation consulting.
Importance 80 Sentiment 20
per
Abhishek Sen
Abhishek Sen, Partner and Leader, Total Rewards, HR Technology and Learning at EY India, provided expert commentary on the 'Future of Pay' report, emphasizing the shift towards skills-based compensation and strategic reward systems.
Importance 60 Sentiment 10
index
NIFTY 200
The report references NIFTY 200 companies in its analysis of CEO compensation, indicating that these companies are a benchmark for executive pay trends in India.
Importance 40 Sentiment 10
Relationships
Abhishek Sen related ↔ EY
EY related ↔ India
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