Salary Increment: Will your salary increase or decrease in 2026? This report provides a significant clue
According to OMAM's report, average salary growth in the IT sector is expected to decline from 8.2% in 2025 to 7.0% in 2026, while in e-commerce it is expected to decline from 10.0% to 9.2%.
Salary Increment: Whether salaries will increase or decrease in 2026 depends largely on the country's economic situation, inflation, industry growth, and the financial health of companies.
However, a new survey suggests that salary growth in Indian industry may be lower in 2026, while employee turnover is expected to remain the same as last year.
According to human resources consulting firm OMAM's Salary and Attrition Trends: Increment Outlook Report 2026, average salary growth is projected to be 8.9% in 2026, compared to 9.1% last year. While average attrition across industries is expected to be around 13.6%.
IT sector in bad shape
The survey, conducted between September and October this year, shows that employers are curbing their compensation budgets due to increased focus on economic uncertainty and recession.
According to OMAM's report, average salary growth in the IT sector is expected to decline from 8.2% in 2025 to 7.0% in 2026, while in e-commerce it is expected to decline from 10.0% to 9.2%.
For FMEG and FMCD, it is expected to decline from 9.5% to 8.7%, while in the automobile sector it is expected to decline from 10.5% to 9.8%.
There will be growth in the communication sector
Sectors such as IT, e-commerce, fast-moving consumer goods (FMCG), fast-moving consumer durables (FMCD), and automobiles are seeing the most significant decline in salary growth.
The OMAM survey also shows that salary growth is slowing in key industrial sectors. Salary growth in the insurance sector is expected to remain at 9%. Telecommunications is the only sector that sees growth, which could increase from 9% to 9.1%.
Highest migration in the IT sector
The IT services sector has the highest employee attrition, with one in five (20%) employees considering a job change for better opportunities. Other high-demand sectors, such as banking and financial services, and retail and e-commerce, are also seeing attrition rise to 17–18%.