Synopsis
Salaries in India are set to rise by 9.2% in 2025, with manufacturing and global capability centres leading the way in pay raises, according to a recent report. While this marks a slight decline from 2024, the overall economic outlook remains stable amid global uncertainties.Key Takeaways
- Salaries in India are projected to rise by 9.2% in 2025.
- Manufacturing sector and GCCs are set for the highest increases.
- Decline from 9.3% in 2024 amid global uncertainties.
- Overall attrition rates have decreased to 17.7%.
- Talent availability has improved post-‘Great Resignation’.
New Delhi, Feb 19 (NationPress) Salaries in India are anticipated to increase by 9.2 percent in 2025, with the manufacturing sector and global capability centres (GCCs) expected to see the most significant salary hikes, as indicated by a recent report published on Wednesday.
This marks a slight decrease from the 9.3 percent increase projected for 2024, primarily due to ongoing global uncertainties and a slowdown in growth. The salary adjustments in India are predicted to stabilize in 2025, according to Aon’s annual ‘Salary Increase and Turnover Survey 2024-25 India’.
The small dip in salary hikes reflects a broader trend of diminishing increments since 2022, when companies offered salary increases of 10.6 percent influenced by the ‘Great Resignation’.
Salary hikes are expected to differ across sectors, with engineering design services and auto/vehicle manufacturing earmarked for the highest increases, followed closely by non-banking financial institutions, retail, global capability centres, and life sciences.
Despite various external uncertainties, India’s economic outlook remains stable, buoyed by improving rural demand and consistent private consumption, as noted by Roopank Chaudhary, partner and rewards consulting leader for Talent Solutions for India at Aon.
The study evaluated data from over 1,400 companies spanning 45 industries.
The observed decline in projected salary increments may be a reaction to external influences, including geopolitical tensions, economic developments, potential impacts of US trade policies, conflicts in the Middle East, and the rapid advancements in generative AI technology.
“The sector-wise increment trends for 2025 display prudence and adaptability as companies strive to manage market challenges while attracting and retaining talent,” Chaudhary explained.
The report further revealed that overall attrition rates fell to 17.7 percent in 2024, down from 18.3 percent in 2023 and 21.4 percent in 2022, suggesting a larger talent pool is available post-‘Great Resignation’.
This stability in workforce availability results from an increased participation in the labor force, despite a rise in self-employment and entrepreneurial activities, presenting a timely opportunity for companies to concentrate on strategic workforce development, reskilling, and institutional support.
