Indian professionals expect up to 10 per cent salary hike in 2026: Report

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The domestic compensation landscape is evolving towards a more selective, skills-aligned wage cycle, according to a report released on Tuesday, March 3, adding that professionals expect salary increments of 6-10 per cent.

High-demand domains such as AI, digital technology, electric vehicles (EV), and specialised technical roles see expectations above 10 per cent, the Adecco India ‘2026 Salary Guide' stated.

It highlighted talent shortages in niche areas, rising labour costs, and the need for large-scale reskilling to meet rapid technological shifts. Skills in leadership and management (22 per cent), AI and machine learning (16 per cent), and project management (15 per cent) are emerging as the most critical over the next five years.

Labour market trends indicate cautious optimism: 42 per cent of professionals are actively seeking new opportunities, while 47 per cent are open to offers but not actively searching, said the report. In healthcare, job changes in clinical research and regulatory affairs may result in salary increases of 20-35 per cent, while fintech and data finance roles may see 30-40 per cent increases. IT specialists such as AI/ML engineers, data engineers, and cybersecurity professionals typically expect 10-12 per cent growth.

Other digital roles, including full-stack, cloud, and DevOps engineers, generally see 8-10 per cent increases. Strategic leadership roles in BFSI, such as CFOs and CROs, command salaries more than twice the market average, while metro cities offer 10-20 per cent higher pay than Tier 2 and Tier 3 locations.

Retention is increasingly driven by holistic employment value, with work-life balance (25 per cent), professional development (23 per cent), brand reputation (16 per cent), managerial quality and culture (14 per cent), and benefits (13 per cent) emerging as key factors. Flexible work arrangements are widespread, with 43 per cent in hybrid roles, 35 per cent fully remote, and 22 per cent fully in-office.

However, AI adoption raises concerns, with 65 per cent of professionals fearing bias in AI-led screening and 35-45 per cent worried about automation reducing job opportunities. Sunil C. Country Manager, Adecco India said we are seeing a clear shift in India's employment landscape towards a more selective, skills-driven model as digital transformation and automation reshape talent demand.

"Salary hikes in 2026 are expected to remain moderate at 6-10 per cent across most industries, with stronger growth concentrated in emerging domains such as Generative AI, data science, cloud, cybersecurity, blockchain, 5G, IoT, quantum computing, and augmented reality over the next three to five years," he stated.

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