A recent survey from Aon finds pay is expected to rise by 9.2% in 2025, down slightly from 9.3% in 2024, because of economic fluctuations.Â
By Maggie Mancini
Salary increments in India are expected to stabilise in 2025, according to Aon’s Annual Salay Increase and Turnover Survey 2024-2025. The study analyses data from over 1,400 companies across 45 industries. Â
The study shows that salaries in India are set to rise by 9.2% in 2025, a slight decline from the increase of 9.3% in 2024, amidst global uncertainty and softening growth. This indicates a trend of declining salary increments since 2022 when companies provided 10.6% salary increases influenced by The Great Resignation. Â
Salary increments are also projected to vary across industries with engineering design services and auto/vehicle manufacturing budgeting for the highest salary increases, followed by nonbanking financial companies, retail, global capability centres, and life sciences. Â
The study also reveals that overall attrition rates declined to 17.7% in 2024 from a high of 18.7% in 2023 and 21.4% in 2022, indicating the availability of a larger talent pool in the wake of the Great Resignation. This stability in talent availability is an outcome of increased labour force participation despite a rise in self-employment and entrepreneurial activity, which presents an opportunity for companies to focus on strategic workforce skilling, reskilling, and institutional support. Â
