Salary Increments Settle Into 8–12% Range as Niche Skills Continue to Command Premium Pay in 2026

Leadership and specialised talent remain key drivers of higher compensation growth​

General annual salary increments across industries are expected to stabilise in the range of 8 to 12 percent, reflecting a more balanced and sustainable compensation environment in 2026. At the same time, professionals with niche technical skills and strong leadership capabilities continue to command significantly higher pay hikes, with compensation increases of up to 30 percent when switching jobs.

According to the Salary Guide 2026 released by Michael Page India, demand remains firm for talent that brings specialised expertise and strategic leadership depth, even as overall salary movements moderate after several years of accelerated growth.

Senior leadership roles dominate top salary brackets​

The guide highlights that leadership positions such as Chief Financial Officers, Chief Technology Officers, Heads of Engineering, and senior transformation leaders continue to rank among the highest-paying roles across sectors. Organisations are increasingly selective in hiring, with a sharper focus on capability-led growth rather than broad-based expansion.

Nilay Khandelwal, Senior Managing Director for India and Singapore at Michael Page, said the Indian market in 2026 reflects a clear shift towards intent-driven hiring. Companies are prioritising specialised skills, leadership strength, and long-term value creation as part of their workforce strategies.

Contract hiring rises amid selective expansion​

While some sectors are adopting a cautious approach due to global uncertainty, India’s strong domestic consumption and expanding local enterprises continue to support hiring confidence. The guide notes a growing preference for contract workers, particularly in technology roles linked to software development, data functions, and digital design, enabling companies to meet project-specific requirements with greater flexibility.

Workforce planning and upskilling gain importance​

The Salary Guide 2026 underscores that organisations investing in purposeful workforce planning, talent development, and a compelling employer value proposition are better positioned to compete in a changing labour market. On the talent side, professionals who focus on continuous upskilling and innovation are expected to play a defining role in shaping the next phase of India’s economic growth.

Global Capability Centres strengthen India’s strategic role​

Global Capability Centres emerge as a major focus area in the 2026 outlook. Their continued expansion reinforces India’s position as a preferred destination for high-value global roles and complex capability building, marking a shift from a cost-driven model to a strategic hub for innovation, analytics, and advanced global operations.

The guide notes that the rise of these centres reflects India’s evolving role in the global talent ecosystem, with organisations increasingly leveraging the country for critical and high-impact functions rather than purely operational support.