Salary Hikes of 9.1% Expected in 2027: What It Means for Your Next Appraisal
A 9.1% average hike sounds simple, but your own increment could be very different. Here is what Aon's 2026-27 survey shows and how to prepare for your next appraisal.
Short answer: Aon's 2026-27 survey projects an average salary hike of 9.1% in India for 2027, almost the same as the 9% actually given in 2026. But that average hides big differences: NBFCs are projected at 10.1%, while technology consulting and services firms are at 6.6%. Your own increment depends far more on your sector, role and performance than on the headline number.
Last reviewed: 6 November 2026.
Appraisal season always arrives with a number floating around: "everyone is getting nine per cent this year." Then the letter lands, and the number on it is six. Or twelve. The truth is that a national average is a weather forecast for the whole country; it doesn't tell you whether it will rain on your street.
What Aon's survey found
Aon's Annual Salary Increase and Turnover Survey for India 2026-27, released on 14 October 2026 and covering more than 1,200 organisations across 45 industries, found:
| Measure | Figure |
|---|---|
| Projected average salary increase, 2027 | 9.1% |
| Actual average increase, 2026 | 9.0% |
| Projected real wage growth (after inflation), 2027 | 5.1%, up from 4.3% in 2026 |
| Employee attrition, 2026 | 18%, up from 16.2% in 2025 |
| Companies budgeting hikes above 9% | 62% |
Which sectors are projected to pay more?
| Sector | Projected 2027 increase |
|---|---|
| Non-banking financial companies (NBFCs) | 10.1% |
| Energy | 9.9% |
| Real estate and infrastructure | 9.8% |
| Global capability centres (GCCs) | 9.4% |
| Technology consulting and services | 6.6% (lowest) |
Why your hike may differ from the average
Companies are paying in a more targeted way
Aon notes that stable budgets are allowing companies to be more selective, focusing on scarce skills, critical roles and market alignment. In practice, top performers in high-demand roles may get well above the average, while others get less.
Attrition is rising again
Attrition climbed to 18% in 2026. When people leave more often, companies tend to protect the employees they most want to keep. If you are in that group, you have more leverage than you might think.
Inflation decides what the hike is really worth
A 9% raise is not 9% more spending power. Aon projects real wage growth of 5.1% for 2027 after adjusting for inflation. If your own costs, such as rent or school fees, are rising faster, your real gain may be smaller.
Also readRemote Jobs Are Shrinking—Should Tech Employees Prepare for a Full Return to Office?→How to prepare for your next appraisal
- Collect your evidence now, not the week before review. List achievements with numbers: revenue, savings, time reduced, customers helped.
- Know your market value. Look at salary ranges for your role in your sector and city, so you can tell whether an offer is fair.
- Show new skills. Aon found 56% of organisations now have established use of AI productivity tools. Showing how you use them to deliver results strengthens your case; see our piece on AI skills and salaries.
- Ask about the full package, not only the fixed pay: variable pay, bonus timing, learning budget and role changes.
- Stay calm if the number disappoints. Ask what would earn a better result next cycle, and get it in writing.
If the internal increment feels unfair compared with the market, a job switch may pay more, but weigh it carefully. Our guide to salary negotiation and our breakdown of salary components help you compare offers properly.
Her View
Women are often less likely to ask for a raise directly, and averages make it tempting to stay quiet: "nine per cent is normal, so I shouldn't push." A calm, evidence-based conversation is not pushy. Write down three results you delivered this year and say them out loud before the meeting. Practising makes it far easier on the day.
Also readAI Skills Are Changing Salaries—Will Employees Without AI Skills Start Earning Less?→His Insight
A salary hike compounds. A 3% difference each year adds up to a very different salary over a decade. That's why it is worth preparing for one appraisal conversation a year as seriously as you would prepare for a job interview: the return on that preparation is higher than most people realise.
Related reading: why job switches feel harder despite strong hiring, why retention matters to leaders and how bonuses are taxed.
Frequently asked questions
What is the average salary hike in India for 2027?
Aon's 2026-27 survey projects an average increase of 9.1% for 2027, close to the 9% recorded in 2026.
Which sector will give the highest salary hike in 2027?
According to Aon, NBFCs are projected to lead at 10.1%, followed by energy at 9.9% and real estate and infrastructure at 9.8%.
Why is the IT services hike lower?
Technology consulting and services firms are projected at 6.6%, the lowest among sectors surveyed, reflecting cost pressure and slower demand in parts of that industry.
Is 9% a good salary hike?
It matches the projected national average. Whether it is good for you depends on your performance, your market value and inflation in your own expenses.
Sources
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