private A good news is coming for the people working in the sector. Yes, the salary of private sector employees may increase by an average of 9 percent in the year 2026. During this period, companies will also give more importance to the bonuses, skills and performance of the employees. This estimate was made in a report on Wednesday. According to the Salary Survey Report 2026 of global consultancy company ‘Mercer’, companies are now creating such a system of salary and other benefits in which the employee not only gets money but also gets career advancement and better work experience.
Special emphasis is being given on bonuses related to short-term incentives.
According to the salary survey report, major factors like individual performance of employees, effect of inflation and competitive position of the company in the job market are playing an important role in the decision of salary hike. In this survey, more than 1500 companies and more than 8000 posts were analyzed. The report shows that now more emphasis is being given on short-term incentives i.e. performance-related bonuses. Additionally, companies are moving toward skills-based organizational structures so that employees with essential and rare skills can be better recognized and paid.
Highest possibility of salary hike in this industry
Malti KS, head of consulting (India), Mercer. “The survey shows that companies in India will stick to planning salary hikes amid cost pressures and retaining good talent,” it said. Sector wise, the highest salary hike in the year 2026 is expected to be in high-tech sectors and auto industry. During this period, salaries in the high tech sector are likely to increase by 9.3 percent, while salaries in the auto industry may increase by 9.5 percent.
Social security and health facilities will be strengthened with the implementation of new labor laws.
On the other hand, employees of IT, IT related services and Global Capability Centers (GCC) remain ahead in terms of facilities and well-being. Due to digital change, artificial intelligence and increasing needs of productivity, 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.
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