India Inc Pay Hikes Projected at 9.1% in 2027, Survey Finds

India's corporate sector is projected to hand out average salary increases of 9.1% in 2027, according to a survey reported by BW Businessworld — a figure that stays high by global standards even as employee attrition across India Inc rises to 18%.

The survey's headline numbers matter for two reasons. First, a 9.1% average hike means Indian employers are still budgeting for raises well above what most mature markets offer. Second, the 18% attrition rate signals that workers themselves are driving much of that pay pressure: when roughly one in five employees changes jobs in a year, companies have to pay up to keep the rest.

What do the numbers actually mean for your paycheck?

An average hike of 9.1% doesn't mean everyone gets 9.1%. Averages in salary surveys blend top performers, who often see low-double-digit increases, with broader workforces receiving less. If you're at or below the average in your role, that's a signal your bargaining position is weaker than the market's — and in a market with 18% attrition, that gap is worth challenging.

The attrition figure cuts both ways. For individuals, high churn means more open roles and stronger leverage in negotiations. For employers, it means replacement hiring costs and lost institutional knowledge, which is precisely why salary budgets keep climbing.

Why is attrition rising alongside pay?

The mechanism is straightforward. When labor demand stays strong, employees can switch jobs for bigger jumps than internal raises deliver — often the only way to get a double-digit move. That behavior pushes overall attrition up, which in turn forces companies to raise budgets for the workers who stay. The survey's 9.1% projection for 2027 suggests employers expect this loop to keep running for at least another budget cycle.

The takeaway: in a market running 18% attrition, the average raise is a floor to measure yourself against, not a ceiling to accept.

What should you watch next?

Survey projections are forecasts, not guarantees — they reflect what companies plan to budget, and actual hikes can come in lower if hiring cools. The 2027 figure will be revised as real payroll data arrives.

If the attrition rate holds near 18% through the next few quarters, expect salary budgets to stay firm; if it falls, companies will have less reason to keep raising pay at this pace.