Oil and gas, GCCs to lead pay hikes as India Inc eyes 9% median salary increase

Salary Increments - The highest salary increments in India are expected in the oil and gas (9.8%), GCCs (9.5%), life sciences and healthcare (9.5%), and construction and materials (9.5%) sectors [1][8] - Other sectors with above-average increases include consumer goods (9.4%) and retail (9.1%) [1][8] - IT services is projected to see a lower increment of 7%, indicating margin pressures and cautious hiring sentiment [2][8] Precision Pay Strategy - Companies are shifting towards precision pay, focusing compensation investments on high-impact roles and scarce skills [2][8] - This approach reflects a deliberate strategy to prioritize stability, critical capabilities, and leadership continuity [5][8] - More than half (57%) of surveyed companies expect bonus payouts to be at or above target, indicating steady business performance [6][8] Variable Pay and Leadership Retention - Variable pay is becoming crucial for retaining leadership and critical talent in a volatile environment [5][7] - Organizations are encouraged to focus on retaining enterprise-critical leaders through a mix of base pay, benefits, and long-term incentives [7][8] - AI is driving a structural reset in organizations, leading to the redefinition of roles around skills [6][8]