New labour code will shrink your hike

India Inc. is expected to roll out an average increment of 8.5-9.5% in the upcoming appraisal cycle, as companies calculate the impact of the new labour code and almost-stag-nant inflation.

- Devina Sengupta

Like this year, 2026 is likely to remain an employer's market, with outliers being those in the pharmaceutical and consumer industries, according to staffing and headhunting firms. While companies are doing better and costs have eased, margin pressure persists, they said.

The average raises have cooled after the hiring frenzy of 2021 and 2022. The hikes in those two years were around 9.7% and 10.6%, respectively, according to consulting firm Aon, excluding inflationary adjustments. The increments in 2023 and 2024 were 9.7% and 9.3%, respectively.