BENGALURU: Employees in sectors such as professional services, engineering, manufacturing, retail, and global capability centres (GCCs) are likely to receive higher salary increments compared to those working in other industries, according to a survey conducted by professional services firm Aon. In 2025, the average salary increase across various sectors is anticipated to reach 9.5%, a slight uptick from the 9.3% projected for the current year. The engineering, manufacturing, and retail industries are poised to offer the most substantial wage hikes at 10%, signalling the critical role that skilled professionals play in these domains amidst the prevailing economic conditions.
Following closely behind, the financial sector is expected to provide a 9.9% salary increment, further underscoring the strategic value that employers assign to top-tier talent in navigating the present fiscal terrain. Aon’s 30th Annual Salary Increase and Turnover Survey 2024-25 has analysed data across 1,176 companies from over 40 industries between July and August 2024.
Roopank Chaudhary, partner and head of reward solutions in India for Aon, said, “Despite evolving global economic challenges, our study indicates a positive business outlook across several sectors in India. This sentiment continues in many of the domestically driven sectors illustrated by the projected increments in the manufacturing, life sciences, and retail industries. Organisations committed to retaining talent in a competitive job market must keep abreast of changing market data and understand the rapidly evolving compensation trends. Having a holistic rewards strategy based on data and analytics will ensure organisations attract and retain the right talent and continue to build a resilient workforce.”
The salary increase trendline shows a notable shift from double-digit increments to high single-digit increments. The projected salary increase for 2025 is pegged at 9.5%. Real wage growth is experiencing fluctuations due to inflation, with a significant dip in 2020 and a recovery thereafter. GDP growth, while showing variability, appears to stabilise after the pandemic-induced decline. Attrition is trending downwards at 16.9% on average this year, compared to 18.7% and 21.4% in 2023 and 2022, respectively.
Tarun Sharma, associate director for Talent Solutions in India for Aon, said, “The softening in attrition provides businesses a unique opportunity to focus on internal growth, capability building, and driving long-term productivity. By cultivating and developing talent internally, firms can reduce the necessity for higher costs associated with new hires while simultaneously enhancing their organisation's employee value proposition.”
Source: Aon Annual Salary Increase and Turnover Survey 2024-25
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