Appraisal season in India runs from March to May for most companies, with salary revisions effective April 1 (the start of the Indian financial year). If you’re heading into your appraisal conversation and have no idea what number to expect — or what to counter with — this guide covers exactly that.
We’ve compiled data from four major India salary surveys: NASSCOM Strategic Review 2025, Mercer India Total Remuneration Survey, Deloitte Workforce Trends Report, and Aon India Salary Increase Survey. All figures reflect FY 2025–26.
The average salary increment across India Inc in FY 2025–26 is projected at 9.0–9.5%, according to Mercer and Aon surveys. This is broadly similar to 2024 (9.2%) and slightly higher than pre-COVID levels (8.6% in 2019).
However, averages hide everything. A company freezing budgets will give 4–5%. A startup that just raised a Series B will hand out 20%+ to retain talent. And a top performer at any company typically gets 1.5–2x the company average. The industry and your individual rating matter far more than the macro number.
| Industry | Average Hike | Top Performer | Core Performer | Below Average | Source |
|---|---|---|---|---|---|
| IT / Software / Product | 8–10% | 14–18% | 7–9% | 3–5% | NASSCOM 2025 |
| IT-Enabled Services (BPO/KPO) | 7–9% | 12–16% | 6–8% | 3–4% | Mercer TRS 2025 |
| BFSI | 9–11% | 15–20% | 8–10% | 3–5% | Aon India 2025 |
| E-commerce / Startup | 10–14% | 18–25% | 9–12% | 0–5% | Deloitte 2025 |
| Consulting / Big 4 | 9–12% | 15–20% | 8–10% | 3–5% | Mercer TRS 2025 |
| Pharma / Healthcare | 7–9% | 12–15% | 6–8% | 2–4% | Aon India 2025 |
| Manufacturing / Auto / Engineering | 6–8% | 10–14% | 5–7% | 2–4% | Mercer TRS 2025 |
| FMCG / Retail / Consumer | 7–9% | 12–15% | 6–8% | 2–4% | Deloitte 2025 |
| Education / EdTech | 6–8% | 10–13% | 5–7% | 2–3% | Aon India 2025 |
Every company allocates a fixed salary budget (typically 8–12% of total payroll). That budget is then distributed based on performance ratings. A typical bell-curve distribution in India looks like this:
This means if your company average is 9% and you got an Outstanding rating, your hike could be 13–18%. If you got Below Expectations, it could be 3–5% or even a freeze.
If your last increment was 18 or 24 months ago (common in companies that skipped a cycle during layoffs or budget cuts), you have a legitimate case for a higher one-time catch-up hike. Frame it this way: “My last increment was 20 months ago. The market has moved, and I’d expect this review to reflect both current performance and the additional tenure.”
Nothing moves a manager faster than a real competing offer. The moment you have one, your negotiation leverage triples. Most companies have a retention band that allows them to match or come close to an external offer without needing lengthy approvals. If you have an offer letter, bring it. If you don’t, don’t bluff — it backfires badly if called.
If you’re being promoted, your increment is typically structured differently — a grade jump brings a higher base, and the hike percentage applies to that new base. A 12% increment at your current grade vs a promotion to the next grade can result in very different absolute numbers. Always ask: “Is this increment on my current grade, or is this a promotion revision?”
Use our Appraisal Hike Calculator to get your industry-specific expected range before the conversation. Walk in knowing your low, expected, and high scenarios. Never negotiate without a number in mind.
Always name a specific percentage, not a range. “I was expecting 18%” is a far stronger anchor than “somewhere between 15 and 20%.” When you give a range, your manager will always hear the lower end.
“I’ve been here 4 years” is a weak argument. “I delivered the API migration 3 weeks ahead of schedule and reduced infra costs by 22%” is a strong one. Come with 2–3 specific, quantified achievements from the last 12 months.
When the number comes in lower than expected, most people freeze or accept immediately. Use this:
“I appreciate the offer and the recognition. Based on my contributions this year — [specific win 1] and [specific win 2] — and the market benchmarks for [your role] in [your industry], I was expecting something closer to [your number]. Could we get to [ask]? I’m committed to staying and growing here, and I want to make sure we start the year on the same page.”
Then stop talking. The first person to speak after the counter-offer loses. Silence is your friend.
Once your increment is confirmed, your salary slip for the new period will show the revised basic, updated HRA, and recalculated PF and PT. If you joined mid-year or your hike is effective from a past month, you’ll also receive salary arrears for the backdated months.
The average salary hike across India Inc in FY 2025–26 is projected at 9.0–9.5%, according to Mercer and Aon surveys. IT and BFSI sectors are at the higher end (8–11%), while manufacturing and education are at the lower end (6–8%). Top performers in any sector typically receive 1.5–2x the company average.
A 10% hike is above the average for most sectors in 2025 (industry average is 9%), so it is a good hike for a core performer. However, for a top performer (Outstanding rating) in IT or BFSI, 10% is below what the market typically delivers for that rating. Context depends on your rating, industry, and whether you are being promoted.
E-commerce, startups, and D2C companies lead with 10–14% average hikes and up to 25% for top performers in 2025. BFSI and consulting follow at 9–12%. IT is stable at 8–10%. Manufacturing, education, and EdTech are at the lower end (6–8%).
If your last increment was 18+ months ago, you have a legitimate catch-up claim. Raise it proactively — don’t wait for the company to bring it up. Frame it as: "My last increment was X months ago. The market has moved in that period. I’d like this review to reflect both current performance and additional tenure." Most managers will treat an overdue review as justification for a higher one-time increment.
Yes — if it is real. A genuine competing offer is the strongest negotiation leverage available. Most companies have a retention mechanism that allows managers to match or closely approach an external offer. Never bluff about having an offer you don’t have. If it comes out, you will lose all negotiating credibility and potentially your job.
This varies by company. Some apply the hike percentage to basic salary only (which results in a lower absolute increase since basic is typically 40–50% of CTC). Others apply it to gross CTC. Always clarify which basis is being used before accepting. Ask: "Is this 10% on my basic salary or on my total CTC?"