Salary Projections - India Inc is projected to increase salaries by an average of 9.1% in 2026, slightly above the 8.9% increase recorded in 2025, reflecting a positive medium-term outlook amidst geopolitical uncertainty [1] - Real estate & infrastructure (10.2%) and non-banking financial companies (10.1%) are expected to deliver the highest salary growth in 2026, followed by automotive and vehicle manufacturing (9.9%), engineering design service (9.9%), engineering & manufacturing (9.5%), and retail (9.5%) sectors [2] Sector Performance - The technology and consulting services sector is projected to have the lowest salary hike at 6.6%, while the technology platform and products sector is expected to provide a higher than average increase of 9.4% [3] Economic Context - India is entering a new growth phase supported by resilient domestic demand, moderating inflation, and new trade agreements, contributing to a positive medium-term outlook despite geopolitical uncertainties [4] - Stronger salary growth in sectors like real estate, NBFCs, and manufacturing indicates employers' intent to invest in critical talent and develop sustainable compensation strategies [4] Employee Retention - Overall attrition in India declined to 16.2% in 2025, nearing pre-Covid levels and reflecting a downward trend over the past three years, attributed to targeted hiring practices and a focus on employee engagement and workplace stability [5] Regulatory Changes - With the notification of India's labour codes, organizations are undergoing significant regulatory transitions, prompting many employers to reassess and restructure compensation strategies [6] - Clear communication regarding these changes is essential for maintaining workforce trust and stability [6] Talent Acquisition Focus - Employers are concentrating on enhancing technology, engineering, and customer-facing capabilities to compete for specialized talent in a changing market environment [7]