How wage hikes are widening the gap among workers

As firms chase scarce skills with a growing relevance, remuneration is skewed in favour of roles related to AI and data scienceSkills for new and upcoming technologies, including AI, data centres and semiconductors, are leading to a widening gap in salary hikes between top talent and other employees. Aon, a global professional services firm, found in its latest study that employers are expected to give salary hikes of 9.1% in 2027 as they balance rising input and energy costs amid geopolitical uncertainty and global trade risks.While the 9.1% figure is in line with the actual 9% increase in 2026, there is also a widening gap in how hikes are distributed among employees. Almost 37% of companies are looking at giving salary hikes of 10% or more, compared with 12% last year. Around 38% of companies plan to give hikes in the average range of 8-10%, as compared to a staggering 72% last year.The sectors offering the highest salary increases are non-banking financial companies at 10.1%, followed by energy at 9.9%, and real estate and infrastructure at 9.8%. These findings are part of Aon’s Annual Salary Increase and Turnover Survey for India 2026-27, which analysed data from more than 1,200 organisations across 45 industries.Also, one in four companies, including those in IT and ITES (IT-enabled services), will give salary hikes of less than 8% to their employees. This share has increased from 16% to 25% this year. Moreover, salaries may decline in real terms, as inflation is projected to be higher in 2027, at around 5.1%, compared to 4.3% in 2026. “The divergence has gone up as new sectors like data centres, semiconductors and quick commerce are looking at giving higher increments,” says Amit Kumar Otwani, Associate Partner, Talent Solutions, India, Aon. Today, salary hikes are a function of niche and critical skills. Employees with these skills will be able to command a premium and negotiate better packages, even in sectors that are slowing down on hiring, he adds. As companies invest in agentic AI and demand for AI skills continues to grow, talent premiums for roles related to AI, machine learning and data science have increased by approximately 10% from 2025.“Employers are increasingly focused not only on how much they spend, but where that investment can deliver the greatest workforce and business value,” says Roopank Chaudhary, Partner & Rewards Consulting Leader, Talent Solutions, India, Aon. He adds that companies, particularly in manufacturing and technology, are making salary adjustments based on what the market pays and the need to attract or retain people with scarce skills.This is particularly significant given that overall attrition increased to 18% in 2026, compared with 16.2% in 2025. Despite increasing layoffs by companies leading to rise in involuntary attrition at 4% from 3.4% last year, there is also intense competition in the market for talent, leading to high voluntary attrition.Subscribe to India Today Magazine- Ends