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Salary Hike in 2026: After the implementation of the new labor law in the country, the amount of salary increment in the private sector has been estimated in a survey conducted with 1,500 companies. It was told that companies are now placing more emphasis on performance based increments.
New Delhi. The new labor code i.e. labor law has been implemented in the country for private companies. Since then people have been speculating as to how much the companies will increase the salary. Some reports even said that this will increase the costs of the companies and they will neglect salary increments. At present, a report has come out that puts an end to all these speculations. It tells how much the companies can increase the salary of their employees in the next year.
Global consulting company Mercer has released its survey report on salaries. It has been told that the average salary of private sector employees in the country is likely to increase by about 9 percent next year. During this period, companies will also give more importance to bonuses, skills and performance. According to the report, companies are now making such a system of salary and benefits, in which the employee not only gets money but also gets career advancement and better working experience.
On which factors will the increment be decided?
The report says that major factors like employee’s personal performance, effect of inflation and competitive position of the company in the job market are playing an important role in the decision of salary hike. More than 1,500 companies and more than 8,000 positions were analyzed in this survey. Now more emphasis is being laid on short-term incentives i.e. performance-related bonuses. Also, companies are moving towards skill-based organizational structures, so that employees with essential and rare skills can be better recognized and paid.
Companies struggling with cost pressure
Malti KS, head of consulting (India), Mercer. Said that the survey shows that companies in India will stick to the salary increase plan amid cost pressure and retaining good talent. If seen sector wise, the highest salary increase in the year 2026 is expected to be in high technology sectors and automobile industry. During this period, salaries in the high technology sector are likely to increase by 9.3 percent, while salaries in the automobile industry may increase by 9.5 percent.
Where will the biggest increase occur?
Employees in information technology (IT), IT-enabled services (ITES) and global competence centers (GCCs) continue to lead in terms of amenities and well-being. Due to digital transformation, artificial intelligence (AI) and increasing productivity needs, the trend of skill-based payment of employees has accelerated. The report also said that with the implementation of new labor laws, social security and health facilities will be strengthened.
