Aon's annual survey of more than 1,200 Indian organisations projects average salary increases of 9.1 per cent in 2027, against 9 per cent paid out in 2026. That number will frame appraisal conversations across India for the next five months. It is also widely misread. It is the average of company budgets, not a figure anyone is owed, and the spread underneath it is wide.

What does 9.1 per cent actually mean?

It is what employers plan to spend on increments, on average, across 45 industries. Aon's Annual Salary Increase and Turnover Survey for India 2026-27, released on 14 October, is one of the largest rewards studies in the country. Inside any one company, that budget is then divided by performance rating, by where you sit in your pay band and by how scarce your skills are.

Where you work moves the number more than the average does. Aon's 2027 projections include:

  • Non-banking financial companies: 10.1 per cent
  • Energy: 9.9 per cent
  • Real estate and infrastructure: 9.8 per cent
  • Technology platforms and products: 9.5 per cent
  • Global capability centres: 9.4 per cent
  • Banking: 8.5 per cent
  • Technology consulting and services: 6.6 per cent

The last line is the one to notice. Technology consulting and services paid 6.6 per cent in 2026 and is projected to pay the same again, the lowest figure in Aon's published table.

Is there more room to negotiate than the average suggests?

Yes, for three reasons. Attrition rose to 18 per cent in 2026, from 16.2 per cent in 2025, so employers are losing people and paying to replace them. Aon also reports a modest rise in non-merit adjustments, increases made to bring pay in line with the market rather than to reward a rating, particularly in manufacturing and technology. And talent premiums for AI, machine learning and data science roles rose by about 10 per cent on 2025.

Aon's Roopank Chaudhary described stable budgets as 'enabling a more targeted approach to pay'. Targeted pay rewards a clear case. It does not find people who stay quiet.

When should you ask?

Before the budget is set, not after the letter arrives. For companies on an April to March appraisal cycle, increment budgets are usually finalised early in the calendar year. By the time ratings are shared, the pool has already been divided. A conversation in November or December shapes the decision. A conversation in May argues with it.

How do you build the case?

  1. Write down outcomes, not effort. Revenue protected, hours saved, a launch delivered, a colleague trained. Put a number on each wherever you can.
  2. Know your market rate. Use the sector figures above, recent offers in your network and salary data from job portals. If your role falls in a scarce-skill category, say so.
  3. Separate merit from market. If your pay has fallen behind the market, closing that gap is a correction, not a reward. Ask for it as one.
  4. Name a figure. A specific number is easier to approve than an open question, and it anchors the discussion.
  5. Ask how the Wage Code changes your pay structure. Aon found 42.8 per cent of employers expect payroll costs to rise by at least 1 per cent as they comply. Know how your CTC will be restructured before you agree a number.

What should you say?

Three openings, for three situations.

When the evidence is strong:

Before increments are finalised, I'd like to discuss my compensation. This year I delivered [outcome, with a number] and [outcome, with a number]. Based on that and the market for this role, I'm asking for an increase to [figure].

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When your pay has fallen behind the market:

My current pay is below the market rate for this role. Comparable roles are being offered [range]. I'd like to close that gap as a market adjustment, separate from my performance increment.

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When you are told the budget is tight:

I understand the budget is fixed. If the increase can't happen now, can we agree in writing on the outcomes that would justify it, and a date in the next six months to review it?

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What if the answer is no?

Get the criteria and the date in writing. A no with a review date is a negotiation still in progress. A no without one is an answer.

Then set your own timeline. With attrition back at 18 per cent, your employer knows the market is moving. Plan as if you know it too.

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Sources

  1. Aon, 'Aon Study Finds Salaries in India Projected to Rise 9.1% in 2027', 14 October 2026
  2. SightsIn Plus on technology services increments, 17 October 2026