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India Inc. Salary Growth Stable Amid Tech Slowdown
8 Apr
Summary
- IT sector salary growth projected to slow in 2026 due to AI.
- Pharmaceutical and manufacturing sectors anticipate higher raises.
- Global Capability Centers offer significantly higher compensation.
Employee compensation in India's IT services sector is anticipated to experience a slowdown in 2026. This projection, detailed in Deloitte's Talent Outlook report, stems from global market volatility and the accelerating impact of artificial intelligence.
While the IT services sector's growth is expected to ease, other sectors are poised for more robust salary increases. Pharmaceuticals may see average hikes of 10.1%, with manufacturing firms forecasting 9.8%. Power and renewable energy companies are projected to offer around 10.4% increments.
Global Capability Centers (GCCs) continue to be a bright spot, offering salaries 20-25% higher than traditional IT services firms. These centers are expected to maintain relatively stronger growth, easing slightly from 9% in 2025 to 8.8% in 2026.
In contrast to the IT sector's cautious outlook, financial services are predicted to see overall salary growth rise to about 9.1% in 2026. NBFCs and asset management firms are expected to offer increments around 9.5% and 9.4% respectively.
