The Deloitte India Talent Outlook 2026 report indicates that average salary increments in India are projected to reach 9.1%, a slight increase from 9.0% in 2025. The pharmaceutical and life sciences sector is at the forefront, anticipating salary hikes nearing 10%. In contrast, the technology sector is taking a more conservative approach, with salary increments reduced by 10-70 basis points compared to the previous year. This reflects a broader trend of companies balancing talent retention with cost discipline in a stabilizing labor market.

Despite a decrease in the share of employees receiving top ratings—from 10% in 2024 to 7% in 2025—promotion rates have risen from 12% to 14%, indicating that organizations are rewarding potential alongside current performance. The report also highlights a shift toward skills-based hiring, with nearly three-quarters of organizations adopting competency frameworks to enhance talent development. This strategic focus aims to align employee skills with organizational needs, particularly as hiring slows and attrition stabilizes at 17.6%.