The salary increments in India are projected to stabilize in 2025, with an expected rise of 9.2%, according to a survey conducted by Aon, a professional services firm. This marks a slight dip from the 9.3% increase in 2024, reflecting a downward trend in salary increments since 2022, when companies had provided 10.6% hikes amid the “Great Resignation.”
Sector-wise Salary Trends
The engineering design services and auto/vehicle manufacturing industries are set to offer the highest salary hikes at 10.2%, followed by Non-Banking Financial Companies (NBFCs) at 10%, and retail (including wholesale and distribution) at 9.8%.
On the other hand, technology consulting and services is expected to see the lowest salary hike at 7.7%, followed by the telecommunication sector at 8%.
Roopank Chaudhary, Partner and Rewards Consulting Leader for Talent Solutions at Aon, stated that while India’s economic outlook remains stable, companies are adopting prudent salary increments in response to external uncertainties such as geopolitical tensions, AI advancements, and evolving US trade policies.
Attrition and Hiring Trends
- Attrition rates declined to 17.7% in 2024, from 18.7% in 2023 and 21.4% in 2022, indicating a larger talent pool available post-pandemic.
- Hiring sentiment remains positive, with 2 out of 5 companies planning to increase their workforce by more than 10%.
- 1 out of 2 companies anticipates top-line growth of over 10% in the coming year.
Amit Kumar Otwani, Associate Partner at Aon, highlighted the importance of AI-driven innovation in workforce planning and compensation strategies. He noted that companies must focus on strategic workforce skilling, reskilling, and institutional support to navigate the changing talent landscape.
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India Leads in Salary Growth Among Major Economies
India continues to lead in salary increments, topping the global charts with a 9.2% hike, followed by Indonesia at 6.1% and China at 5.3%.
The findings are based on Aon’s Annual Salary Increase and Turnover Survey 2024-25, which analyzed data from over 1,400 companies across 45 industries.
