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India Inc is expected to witness an average salary increase of 9.2% in 2025, slightly lower than 2024
Salary Trends In 2025
India Inc is expected to witness an average salary increase of 9.2% in 2025, slightly lower than the 9.3% hike in 2024, as companies navigate global uncertainties, including Trump’s trade policies and a slowing global economy, according to the latest Aon salary survey.
Declining Salary Growth Since 2022
The study highlights a downward trend in salary increments since 2022, when companies offered a record 10.6% increase, fueled by the Great Resignation of 2021. During the COVID-19 pandemic, a significant wave of voluntary resignations forced companies to raise salaries to retain talent.
Now in its 30th year, the survey analyzed salary data from over 1,400 companies across 45 industries.
Stable Economy But External Challenges Persist
Despite external pressures, India’s economic outlook remains strong, supported by rising rural demand and sustained private consumption, says Roopank Chaudhary, Partner and Rewards Consulting Leader for Talent Solutions at Aon.
“The downward trend in salary increments reflects global economic and geopolitical shifts, including the impact of U.S. trade policies, conflicts in the Middle East, and rapid advancements in generative AI,” Chaudhary explained.
With companies facing margin pressures, a moderation in salary hikes is a natural outcome, he added.
| Industry | Actual Salary Increase 2024 (%) | Projected Salary Increase 2025 (%) |
|---|---|---|
| Engineering Design Services | 10.1 | 10.2 |
| Automotive/Vehicle Manufacturing | 10.7 | 10.2 |
| Nonbanking Financial Companies | 10.1 | 10.1 |
| Retail | 9.6 | 9.8 |
| GCC | 9.4 | 9.7 |
| Engineering/Manufacturing | 9.7 | 9.7 |
| Real Estate/Infrastructure | 10.6 | 9.7 |
| Life Sciences | 9.5 | 9.6 |
| Professional Services | 8.9 | 9.5 |
| Technology Platforms & Products | 9.5 | 9.4 |
| E-commerce | 9.1 | 9.3 |
| Chemicals | 8.6 | 9.2 |
| FMCG/FMCD | 9.3 | 9.1 |
| Services | 8.8 | 8.9 |
| Banking | 9.1 | 8.8 |
| Technology consulting & services | 7.6 | 7.7 |
| Overall India | 9.3 | 9.2 |
Source: Aon
The survey also revealed a decline in overall attrition rates to 17.7% in 2024, down from 18.7% in 2023 and 21.4% in 2022. This suggests a larger talent pool post-Great Resignation, driven by higher workforce participation despite growing self-employment and entrepreneurial activity.
“In a globally connected world, shifting government policies, business strategies, and workforce expectations will continue to shape India’s economy and job market,” said Amit Kumar Otwani, Associate Partner for Talent Solutions at Aon.
“To stay ahead, companies need comprehensive market insights, data-driven decision-making, and advanced technology to anticipate shifts and strategically prepare for the future,” he concluded.
