India Inc's projected salary hike for 2025 higher than 2024
A recent study by Aon, a global professional services firm, predicts that Indian companies are set to offer an average salary increment of 9.5% in 2025. This forecast is slightly higher than the actual increase of 9.3% observed this year. The study is part of the initial phase of Aon's 30th Annual Salary Increase and Turnover Survey for the fiscal year 2024-25, which analyzed data from over 1,176 firms across more than 40 industries between July and August this year.
Engineering, manufacturing, and retail sectors to see highest hikes
The Aon study also reveals sector-specific salary increment trends for 2025. It forecasts that the engineering and manufacturing sectors, along with the retail industry, are poised to offer a double-digit salary increase exceeding 10%. Financial institutions are not far behind with an expected hike of 9.9%. These projections underscore the strategic importance employers in these sectors place on talent retention amid the current business climate.
Tech sector shows optimism despite cautious start
Despite a cautious start to the year, the technology sector in India is showing signs of optimism as 2025 approaches. Global capability centers and technology products and platforms are anticipating a more optimistic salary hike of 9.9% and 9.3%, respectively. However, technology consulting and services are expected to offer a slightly lower increment at around 8.1%.
Attrition rates show downward trend in India
The Aon study also analyzed attrition rates, revealing a downward trend. The average churn rate for this year was recorded at 16.9%, a decrease from the 18.7% reported in 2023 and significantly lower than the 21.4% reported in 2022. This data suggests that companies are becoming more successful at retaining their employees over time.
