<p>Global Capability Centres (GCCs) are set to lead salary growth in 2026, with projected increments of 10.4 per cent (from 10.2 per cent in 2025), followed by financial services at around 10 per cent, and ecommerce at 9.9 per cent. According to the EY Future of Pay report, India Inc is projected to have a 9.1 per cent salary increase this year.</p>.<p>The report states that the country is expected to host about 2,100 GCCs by FY28, growing at 8 per cent CAGR. GCC salary increments remain structurally elevated, supported by sustained global demand and skill scarcity, positioning GCCs as the strongest salary growth segment.</p>.<p>The sector has a revenue potential of about $100 billion by 2030. The report says that Bengaluru, Hyderabad and NCR continue to attract global investments as leading GCC hubs. Also, about 63 per cent of GCCs hire for niche skills. Generative AI, ML engineering and advanced analytics attract the highest base pay premiums (30 per cent-40 per cent+), with technology and GCCs leading, followed by BFSI, according to the report.</p>.Amazon opens new office in Bengaluru, company's 2nd biggest in Asia .<p>As AI adoption accelerates across sectors, compensation models are being recalibrated to better reflect productivity, skill application, and measurable business impact. Between 50 per cent and 60 per cent of large organisations now use analytics in compensation planning, making data-driven decisions a core part of rewards strategy. At the same time, the use of AI across rewards and learning functions has tripled over the past 2-3 years, signalling a clear shift toward more intelligent and responsive people systems, the report adds.</p>.<p>“We are at a turning point in how organisations think about investing in their people. The future of pay in India is no longer defined by the size of the annual increment alone. It is increasingly about precision – deciding which skills to invest in, what outcomes to reward, and how to balance competitiveness with sustainability," Abhishek Sen, Partner and Leader, Total Rewards, HR Technology and Learning, People Consulting, EY India, said.</p>.<p>Reward strategies are becoming more deliberate, with sharper differentiation and better use of data. At the same time, employees are looking beyond the size of the increment; they want clarity, fairness, and consistency in how pay decisions are made, Sen added. As far as attrition is concerned, trends indicate a gradual normalisation in the workforce market, as overall attrition declined to 16.4 per cent in 2025, from 17.5 per cent in 2024. </p>
<p>Global Capability Centres (GCCs) are set to lead salary growth in 2026, with projected increments of 10.4 per cent (from 10.2 per cent in 2025), followed by financial services at around 10 per cent, and ecommerce at 9.9 per cent. According to the EY Future of Pay report, India Inc is projected to have a 9.1 per cent salary increase this year.</p>.<p>The report states that the country is expected to host about 2,100 GCCs by FY28, growing at 8 per cent CAGR. GCC salary increments remain structurally elevated, supported by sustained global demand and skill scarcity, positioning GCCs as the strongest salary growth segment.</p>.<p>The sector has a revenue potential of about $100 billion by 2030. The report says that Bengaluru, Hyderabad and NCR continue to attract global investments as leading GCC hubs. Also, about 63 per cent of GCCs hire for niche skills. Generative AI, ML engineering and advanced analytics attract the highest base pay premiums (30 per cent-40 per cent+), with technology and GCCs leading, followed by BFSI, according to the report.</p>.Amazon opens new office in Bengaluru, company's 2nd biggest in Asia .<p>As AI adoption accelerates across sectors, compensation models are being recalibrated to better reflect productivity, skill application, and measurable business impact. Between 50 per cent and 60 per cent of large organisations now use analytics in compensation planning, making data-driven decisions a core part of rewards strategy. At the same time, the use of AI across rewards and learning functions has tripled over the past 2-3 years, signalling a clear shift toward more intelligent and responsive people systems, the report adds.</p>.<p>“We are at a turning point in how organisations think about investing in their people. The future of pay in India is no longer defined by the size of the annual increment alone. It is increasingly about precision – deciding which skills to invest in, what outcomes to reward, and how to balance competitiveness with sustainability," Abhishek Sen, Partner and Leader, Total Rewards, HR Technology and Learning, People Consulting, EY India, said.</p>.<p>Reward strategies are becoming more deliberate, with sharper differentiation and better use of data. At the same time, employees are looking beyond the size of the increment; they want clarity, fairness, and consistency in how pay decisions are made, Sen added. As far as attrition is concerned, trends indicate a gradual normalisation in the workforce market, as overall attrition declined to 16.4 per cent in 2025, from 17.5 per cent in 2024. </p>