Private Sector Sees Stable Salary Hikes: 9.1% Projected for 2026

• Deloitte India survey projects 9.1% salary increments for 2026, slightly up from 9.0% in 2025, indicating stable growth.
• Life Sciences (9.9%) and Manufacturing (9.8%) lead salary growth; ITES sector sees a slight slowdown at 8.5%.
• Companies are prioritizing junior management and individual contributors, who are expected to receive an average hike of 9.7%.
• Despite stable increments, 4 out of 5 companies plan to increase their workforce in 2026, with strong hiring in Consumer Products and Life Sciences.
• Promotions increased from 12% in 2024 to 14% in 2025, particularly in manufacturing, while AI adoption in HR remains nascent.

Key Questions Answered

Will new labor laws impact future salary hikes?

New labor laws effective April 1, 2026, will impact salary structures by mandating that basic salary constitutes at least 50% of total CTC.

Which sectors will see the highest salary growth?

Life Sciences sector is projected to see the highest salary growth at approximately 9.9%. Manufacturing follows with a 9.8% increase.

How will AI change HR practices in India?

AI is set to transform HR practices in India by automating administrative tasks, leading to new skill demands, and creating hybrid roles.