A salary increment is a raise to your fixed pay, most commonly delivered once a year in Indian companies, tied to the April-to-March financial year rather than a calendar-year cycle.

Typical cycle and ranges

Increment reviews usually land in the April-to-June window, following the close of the financial year. Industry-wide, average increments have been projected at around 9.1% for 2026, per major compensation surveys from Deloitte India, EY and Aon, a modest rise from roughly 9.0% the year before. The number varies meaningfully by sector: construction and real estate have run higher, around 10.9%, Global Capability Centres around 10.4%, financial services near 10%, e-commerce close to 9.9%, and the broader technology sector more cautious, with some firms trimming projections compared to the prior year.

These are averages across entire organisations, not a guarantee for any individual; actual increments vary widely by performance rating, role criticality and how the specific business unit performed.

Frequently asked questions

Is a salary increment the same as a promotion raise?

No, though they often happen together. A standard annual increment applies without a change in role or title; a promotion typically brings a larger, separate increase tied to the new position.

Does an increment change CTC or just take-home pay?

It raises overall CTC, which then flows through to a higher basic, higher statutory contributions, and higher take-home, though the exact split depends on how the new CTC is structured.

Why do increment percentages differ so much by industry?

They track how competitive hiring and retention pressure is in that sector in a given year, sectors seeing faster growth or tighter talent supply tend to post higher average increments.

Model the effect of a specific increment with the Salary Increment Calculator.