A recent survey conducted by Aon has unveiled that salaries in India are projected to increase by 9.5 percent in 2025, compared to an actual increase of 9.3 percent in 2024.
Looking at the data, salaries across industries in India continue to vary. The engineering, manufacturing, and retail industries project double-digit increases at 10 percent, closely followed by financial institutions at 9.9 percent indicating the strategic importance employers place on talent in these sectors in the current economic landscape.
Although the year started cautiously for the technology sector, the sentiment is optimistic as we enter 2025. Global capability centres and technology products and platforms expect a more optimistic salary increase at 9.9 percent and 9.3 percent, respectively, while the technology consulting and services projected increments at a lower end of 8.1 percent.
Industry
Actual salary increase 2024 (%)
Projected salary increase 2025 (%)
Attrition overall 2024 (%)
India-All Industries
9.3
9.5
16.9
Engineering and Manufacturing
9.9
10.0
12.2
Retail
9.8
10.0
17.9
Financial Institutions
9.8
9.9
27.3
Global Capability Centres
9.7
9.9
13.2
Life Sciences
9.7
9.8
16.5
Professional Services
9.9
9.7
22.1
FMCG/Fast Moving Consumer Durables
9.5
9.5
15.5
Technology Platforms and Products
9.0
9.3
14.5
Technology Consulting and Services
7.4
8.1
19.1
Phase one of the study analysed data across 1,176 companies from over 40 industries between July and August 2024. Phase two of the study will include data collected in December and January and will be published in early 2025.
“Despite evolving global economic challenges, our study indicates a positive business outlook across several sectors in India. This sentiment continues in many domestically driven sectors illustrated by the projected increments in the manufacturing, life sciences and retail industries. Organisations committed to retaining talent in a competitive job market must keep abreast of changing market data and understand the rapidly evolving compensation trends. Having a holistic rewards strategy based on data and analytics will ensure organisations attract and retain the right talent and continue to build a resilient workforce,” said Roopank Chaudhary, partner and head of reward solutions in India for Aon.
Looking at the attrition analysis, a downward trend is apparent with attrition reported at 16.9 percent on average this year, compared to 18.7 percent reported in 2023 and 21.4 percent reported in 2022.
Tarun Sharma, associate director for Talent Solutions in India for Aon said, “The softening in attrition provides businesses a unique opportunity to focus on internal growth, capability building, and driving long-term productivity. By cultivating and developing talent internally, firms can reduce the need for higher costs associated with new hires while enhancing their organisation’s employee value proposition.”