Salaries across industries in India are expected to increase by 9.5% in April 2025, while the government offers a consistently optimistic yet stable base salary increments. This also coincides with the actual salary increases made in 2024, suggesting it will maintain standard pay grounds for employees.
Salary Projections Across Sectors
Based on Aon’s 30th Annual Salary Increase and Turnover Survey, here are a few industries projected to experience at least higher than average salary hikes:
- Engineering and Manufacturing: Expected to lead with 10%, according to strong demand and expansion in both.
- Retail: Also expected to show a 10% increase, coinciding with increased spending of consumers and expansion of market base.
- Financial Institutions: Set at a 9.9%, payment stability and growth in the bank and financial services would benefit from this.
- Global Capability Centers (GCCs): Expected to offer 9.9% hike, which represents the ongoing importance of India in terms of being a hub for global operations.
- Technology Products: Expected to have a 9.3% increase, showing steady industry growth within technology.
These estimates have been collated from over 1,176 organizations across 40 industries, making this survey one of the most comprehensive.
Attrition Trends
The survey also notes the attrition already at an average of 16.9% in 2024, down from 18.7% in 2023 and 21.4% in 2022. This drop suggests employee retention and satisfaction improvement, perhaps as a result of compensation strategies and work environments improving.
Global Context
This puts India ahead as a salary increaser in the entire Asia-Pacific region. Compared to this, other countries are likely to see salary increments of:
- Vietnam: 7.6%
- Indonesia: 6.5%
- Philippines: 5.6%
- China: 5%
- Thailand: 5%
From this, it is inferred that India competes strongly in terms of salary increase as compared to the other emerging regions.
Employer Outlook
Maintaining a relatively positive employer outlook in India despite global challenges from inflation and geopolitical uncertainties toward salary increase budgets includes roughly 46% of companies maintaining same budgets as in 2024, while 28% expect to see lower budgets due to cost management concerns.
Conclusion
At 9.5%, the salary increase expected to be implemented in 2025 is indicative of the country showing resilience in economic growth and persistent demand for skilled professionals. Engineering, manufacturing, and retail sectors shall lead the competition in making the earnings more attractive to prospective and retained employees. The job market will continue to evolve, and both employers and employees consider themselves within the crossroads of one such year to track the changes.
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