Expert Opinion: India’s Workplace Models and Pay Structures Set to Evolve in FY 2026

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As India’s economic and demographic realities continue to differ from global work models, hybrid work structures will evolve in ways uniquely suited to the country. Rather than a uniform return-to-office or fully remote approach, organizations will increasingly design flexible hybrid systems that balance productivity, talent availability, and cost efficiency across regions.

A notable trend expected in FY 2026 is the adoption of the hub-and-spoke model. Many companies are likely to establish primary hubs in major metros while building smaller operational spokes in Tier II and Tier III cities. This approach allows organizations to access skilled talent from emerging cities, reduce real estate and attrition costs, and strengthen regional employer branding—while maintaining strategic control from central hubs.

Alongside workplace transformation, compensation and payroll systems are also undergoing a structural shift. Interlinked salary components, digital pay wallets, and earned wage access (EWA) solutions are set to gain widespread acceptance. These innovations offer employees greater financial flexibility, liquidity, and control over their earnings—addressing short-term cash flow needs without increasing employer cost burdens.

For employers, such systems enhance engagement, retention, and financial wellbeing while ensuring compliance with evolving labour regulations. As India moves toward FY 2026, organizations that align hybrid work strategies with modern pay infrastructure will be better positioned to build resilient, inclusive, and future-ready workplaces—where flexibility is not a benefit, but a core operating principle.

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