Indian employees may have reasons to be optimistic about salary hikes in 2027, as companies are expected to increase salaries by an average of 9.1%, slightly higher than the estimated 9% increase in 2026.
According to Aon’s annual Salary Increase and Turnover Survey 2026–27, Indian companies are focusing on salary revisions, recruitment, employee retention and cost management amid changing business conditions. The survey reportedly covered more than 1,200 companies across 45 industries.
However, the projected increase is an estimate, and actual salary hikes will vary depending on individual performance, industry trends and company policies.
How Much Salary Hike Can Employees Expect in 2027?
The survey projects an average salary increase of 9.1% in India in 2027, indicating a relatively stable trend in salary growth.
For example, an employee earning an annual salary of Rs 6 lakh could receive an annual increase of Rs 54,600 if the full 9.1% hike is applied. This would take the employee’s annual salary to Rs 6,54,600.
However, the actual increment will depend on the employer’s compensation policy, the employee’s performance and the nature of their role.
Employee Attrition and Layoffs on the Rise
The survey also highlights changes in employee turnover and workforce management.
According to the available estimates, India’s employee attrition rate increased from 16.2% in 2025 to 18% in 2026. Meanwhile, the rate of employees being laid off by companies reportedly rose from 3.4% to 4% during the same period.
These trends indicate that companies are balancing the need to retain skilled employees with recruitment requirements and cost-control measures.
Salary Hikes May Vary Across Industries
Not all employees will receive the same salary increase in 2027. Increments will depend on industry-specific conditions, professional skills, individual performance and the financial health of employers.
Inflation will also play an important role in determining the actual benefits of salary hikes. Even when salaries increase, rising living expenses may affect employees’ purchasing power.
While the projected 9.1% salary increase offers a positive outlook for India’s workforce, employees should remember that the figure is an industry-wide estimate rather than a guaranteed increment for every worker.