Salary boom in India: Salary will increase by 9% in 2026… Know which sector will see the biggest impact

New Delhi. The average salary of private sector employees in the country is likely to increase by about nine percent next year. During this period, companies will also give more importance to bonuses, skills and performance. This estimate was made in a report on Wednesday.

According to the salary survey report 2026 of global consulting company ‘Mercer’, companies are now making such a system of salary and benefits in which the employee not only gets money but also gets career advancement and better working experience. The report says that major factors like employee’s personal performance, effect of inflation and competitive position of the company in the job market are playing an important role in the decision of salary hike. The survey analyzed more than 1,500 companies and more than 8,000 positions.

The report suggests that now more emphasis is being placed on short-term incentives i.e. performance-linked bonuses. Additionally, companies are moving toward skill-based organizational structures so that employees with essential and rare skills can be better recognized and paid. Malti KS, head of consulting (India), Mercer. “The survey shows that companies in India will stick to salary hike plans amid cost pressures and retaining good talent,” it said.

Sector wise, the highest salary increase in the year 2026 is expected to be in high technology sectors and automobile industry. During this period, salaries in the high technology sector are likely to increase by 9.3 percent, while salaries in the automobile industry may increase by 9.5 percent. At the same time, employees of Information Technology (IT), IT related services (ITES) and Global Competence Centers (GCC) remain ahead in terms of facilities and well-being. Digital transformation, artificial intelligence (AI) and increasing productivity needs have accelerated the trend towards skill-based payment of employees. The report also said that social security and health facilities will be strengthened with the implementation of new labor laws.