Amid global uncertainty, salaries in India to rise by 9.2% in 2025: Aon

According to the Annual Salary Increase and Turnover Survey 2024-25 India by Aon plc, salary increments in India are expected to stabilize at 9.2% in 2025, slightly lower than the 9.3% increase in 2024. Salary hikes will vary across industries, with engineering design services and auto/vehicle manufacturing projected to see the highest increases, followed by non-banking financial companies (NBFCs), retail, global capability centers (GCCs), and life sciences. Despite external uncertainties, India’s economic outlook remains stable, driven by improving rural demand and sustained private consumption. However, geopolitical tensions, evolving United States (US) trade policies, conflicts in the Middle East, and rapid advancements in generative artificial intelligence (AI) may contribute to salary moderation as companies navigate market challenges.

The study also highlights a decline in attrition rates to 17.7% in 2024 from 18.7% in 2023 and 21.4% in 2022, indicating a larger talent pool post-Great Resignation. Despite a rise in self-employment and entrepreneurship, increased labour force participation allows companies to focus on workforce skilling, reskilling, and institutional support. Experts at Aon emphasize the importance of data-driven market analysis and advanced technology in understanding shifts in workforce behaviour and economic trends. Now in its 30th year, the study remains one of India’s most comprehensive reward studies, analysing data from over 1,400 companies across 45 industries.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.