India’s median salary increase is expected to remain at 9.5% in 2025, according to WTW’s Salary Budget Planning Report. This figure aligns with the actual salary increase of 9.5% observed in 2024.
As an emerging market in the Asia Pacific region, India continues to lead in terms of salary increases. Other APAC countries like Vietnam, Indonesia, the Philippines, China, and Thailand are also projected to maintain strong salary growth.
While 46% of Indian companies anticipate similar salary increase budgets for 2025 compared to 2024, 28% expect lower budgets. Concerns about cost management, inflation, potential recession, and a tighter labour market are influencing these projections.
Rajul Mathur, Consulting Leader, Work and Rewards, WTW India said “While companies in India are optimistic about growth, they are balancing optimism with caution. The era of ‘Great resignation’ is behind us, both employers and employees are now seeking stability and the market sentiment is notably steadier.”
Approximately 28% of Indian companies plan to increase their headcount in the next 12 months, while 68% intend to maintain their workforce. Despite higher growth rates, the country’s voluntary attrition rate remains one of the highest in the region. However, it has slightly decreased from 11% in 2023 to 10.8% in 2024.
Salary increases in sectors like pharmaceuticals, manufacturing, insurance, captives, SSO, and retail are projected to exceed the general industry median of 9.5%. In contrast, software and business services are expected to fall below the average.
Variable payouts are forecasted to remain consistent at 12.5% in 2025. To recognize top performers, organizations are allocating larger portions of their variable pay budgets to those who consistently exceed expectations.
The survey, conducted by WTW’s Rewards Data Intelligence practice in April and June 2024, gathered approximately 32,000 responses from companies in 168 countries, including 709 from India.