Pay hikes ease to 9.1% in 2026 as firms focus on skill-based rewards: EY report

India Inc. anticipates a 9.1% salary increment in 2026, with Global Capability Centers leading at 10.4%. Attrition is normalizing, though voluntary exits remain high. Organizations are increasingly adopting skill-based pay and sharpening performance-linked variable pay, while strategic use of Long-Term Incentive Plans is crucial for talent retention.