India Inc. Forecasts 9% Salary Growth in 2026; Focus Shifts to Incentives & Skills

• Indian companies anticipate an average 9% salary increase in 2026, as per Mercer India’s ‘Total Remuneration Survey’.
• Employers are shifting focus to short-term incentives, skills-based pay systems, and holistic employee value propositions.
• Despite economic challenges, salary drivers include individual performance, inflation, and talent market competitiveness.
• Automotive (9.5%) and high-tech (9.3%) sectors lead projected hikes; IT/GCCs noted for innovative benefits.
• Rewards strategies are being redesigned to create a resilient, future-ready workforce, emphasizing skills and agility.

Why It Matters: India Inc. expects 9% salary growth in 2026, with a strategic shift towards skills and incentives.