Bengaluru: India Inc is likely to see median salary increases of 9% in 2026, equivalent to the actual increase reported by organisations last year, finds a new report.
According to Korn Ferry’s latest India Compensation Survey, the highest salary increments are expected across the oil and gas (9.8%), GCCs (9.5%), life sciences and healthcare (9.5%), and construction and materials (9.5%) sectors.
Other sectors with above average increases include consumer goods (9.4%) and retail (9.1%).
By contrast, IT services is expected to see a 7% increment, underscoring continued margin pressures and cautious hiring sentiment amid global technology recalibrations.
Rather than broad-based increases, the survey of 759 companies highlights that companies are moving toward precision pay—channelling compensation investments into high-impact roles, scarce skills and positions that disproportionately influence enterprise outcomes.
This is also evident in variable pay, where payouts reflect the critical importance of retaining leadership and critical talent in a volatile environment.
“What we are seeing in the data is a clear shift toward discipline and intent. Companies are being far more deliberate about where they invest the compensation capital—prioritising stability, critical capabilities and leadership continuity,” said Navnit Singh, chairman and regional managing director, Korn Ferry.
“Precision pay is no longer optional; it is becoming a strategic imperative for sustained performance and long-term value creation,” he added.
More than half (57%) of the companies surveyed expect bonus payouts to be at or above target, reflecting steady business performance and disciplined planning. However, higher payouts are becoming more selective.
AI is also accelerating a structural reset across organisations, with roles being redefined around skills.
“Organisations should focus on retaining enterprise-critical leaders who drive strategic outcomes and deliver impact, through a mix of base pay, benefits and long-term incentives. Variable pay can become a powerful performance lever—reinforcing accountability and linking rewards more directly to business impact,” said Vasudha Handa, partner and delivery leader, total rewards and work measurement, Korn Ferry.
According to Korn Ferry’s latest India Compensation Survey, the highest salary increments are expected across the oil and gas (9.8%), GCCs (9.5%), life sciences and healthcare (9.5%), and construction and materials (9.5%) sectors.
Other sectors with above average increases include consumer goods (9.4%) and retail (9.1%).
By contrast, IT services is expected to see a 7% increment, underscoring continued margin pressures and cautious hiring sentiment amid global technology recalibrations.
Rather than broad-based increases, the survey of 759 companies highlights that companies are moving toward precision pay—channelling compensation investments into high-impact roles, scarce skills and positions that disproportionately influence enterprise outcomes.
This is also evident in variable pay, where payouts reflect the critical importance of retaining leadership and critical talent in a volatile environment.
“What we are seeing in the data is a clear shift toward discipline and intent. Companies are being far more deliberate about where they invest the compensation capital—prioritising stability, critical capabilities and leadership continuity,” said Navnit Singh, chairman and regional managing director, Korn Ferry.
“Precision pay is no longer optional; it is becoming a strategic imperative for sustained performance and long-term value creation,” he added.
More than half (57%) of the companies surveyed expect bonus payouts to be at or above target, reflecting steady business performance and disciplined planning. However, higher payouts are becoming more selective.
AI is also accelerating a structural reset across organisations, with roles being redefined around skills.
“Organisations should focus on retaining enterprise-critical leaders who drive strategic outcomes and deliver impact, through a mix of base pay, benefits and long-term incentives. Variable pay can become a powerful performance lever—reinforcing accountability and linking rewards more directly to business impact,” said Vasudha Handa, partner and delivery leader, total rewards and work measurement, Korn Ferry.
