Salaries in India rise faster than in most of Europe, and the market expects regular reviews. If you employ someone in India, or work with someone through a satellite office, plan for the review in advance. When reviews are skipped, people leave.
What the market data says
Aon’s annual salary survey for India covers more than 1,200 organisations. Its edition for 2026 to 2027 found:
- Salaries rose 9% on average in 2026, and the projected increase for 2027 is 9.1%.
- Increases vary by sector. Technology consulting and services firms were projected at the low end, at 6.6%.
- Attrition rose to 18% in 2026, up from 16.2% in 2025. Competition for good people stays strong even when pay increases hold steady.
Read those as averages, not prices. A strong performer in a role that is in demand will expect more than the average, and will get it somewhere.
When reviews happen
India’s financial year runs from April to March, and many employers align annual reviews with it. Whenever your cycle runs, the important thing is that it exists, that the person knows when it is, and that it happens on time.
How to plan for one
- Put it in the plan on day one. If your plan assumes the same cost forever, it is wrong from the start.
- Benchmark against the market for the role and level. Not against what they earned before, and not against a European salary.
- Separate the review from the pay decision, slightly. First talk about performance against the outcomes you agreed. Then talk about pay. Mixing the two turns every review into a negotiation.
- Use more than money. Scope, a new responsibility, learning paid for, a promotion path. People stay where they are growing.
What the review is for
The review is not an annual cost increase. It is the moment a good person decides whether their future is with you. Treat it that way and attrition becomes something that happens to other companies.
How this works in a satellite office
Reviews are part of the Grow phase, one of the 5 phases we run. The Grow phase covers:
- performance management
- salary reviews and benchmarking
- learning and development
- promotion management
- engagement and office events
Salary reviews are shared: we benchmark against the market and bring you a recommendation, and you take part in the decision.
How a review affects your seat is agreed with you before anyone starts, so there are no surprises a year in.
See every touchpoint on what’s included, or talk to us.
Sources
- Salary increase and attrition data, Aon Annual Salary Increase and Turnover Survey for India 2026-27: Aon press release, 14 October 2026; sector detail: Business Standard