In a positive development for India’s workforce, salary packages are projected to rise by an average of 9.5% in 2025. This forecast, based on comprehensive data analysis, indicates a steady growth trajectory despite evolving global economic challenges.
The report, conducted by Aon, a leading global professional services firm, sheds light on salary trends across various sectors and provides insights into the changing landscape of talent management.
Sector-Wise Salary Projections
The engineering and manufacturing industries are at the forefront of salary hikes, with a projected increase of 10%.
Employers in these sectors recognize the strategic importance of retaining skilled talent, especially as technological advancements drive innovation and competitiveness.
Retail follows closely with a projected salary hike of 10%. As consumer behavior evolves and e-commerce continues to thrive, companies are investing in their retail workforce to enhance customer experiences and adapt to changing market dynamics.
Financial institutions are expected to offer a substantial 9.9% salary increase. Given the critical role these institutions play in the economy, attracting and retaining top talent remains a priority.
GCCs and technology product companies anticipate optimistic salary increments at 9.9% and 9.3%, respectively. These sectors leverage technology and innovation, making competitive compensation essential for talent acquisition.
While still healthy, the technology consulting and services sector projects a slightly lower increase at 8.1%. Organizations in this space are balancing cost efficiency with the need to reward their workforce adequately.
Attrition Trends
Looking at attrition rates, a positive trend emerges. In 2024, the average attrition rate stands at 16.9%, down from 18.7% in 2023 and 21.4% in 2022.
Tarun Sharma, Associate Director for Talent Solutions (India), Aon expressed his optimism. Tarun said, “The softening in attrition rates allows businesses to prioritize internal growth and development.”
He added, “It’s an opportunity to invest in our existing workforce and build resilience.”
This decline provides businesses with an opportunity to focus on internal growth, capability building, and long-term productivity. By reducing reliance on expensive external hires, companies can strengthen their existing talent pool.
Roopank Chaudhary, Partner and Head of Reward Solutions (India), Aon said, “Despite global economic challenges, the study indicates a positive business outlook across several sectors in India.”
He added, “This sentiment is evident in the projected increments within manufacturing, life sciences, and retail industries.”
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