Salary hikes to be flat at 9.2%: Survey

BENGALURU: Salary increments in India are expected to remain flat at 9.2% this year compared to a 9.3% increase last year amidst global uncertainty and softening growth, according to Aon’s Annual Salary Increase and Turnover Survey 2024-25 India.
The survey is based on data from more than 1,400 firms across 45 industry sectors. The report showed a consistent decline in salary increments since 2022, when many companies rolled out 10.6% hikes during the Great Resignation period as they attempted to retain staff amidst mass exodus and skills scarcity.
Wage increases are anticipated to differ among sectors, with engineering design services and automotive manufacturing leading at 10.2% hikes. Global capability centres (GCCs) and engineering manufacturing are expected to roll out 9.7% hikes this year. Above-average pay rises are expected in non-banking financial firms, retail, GCCs, and life sciences. In contrast, banking and technology consulting services are forecast to be more restrained, with expected increases of 8.8% and 7.7%, respectively.
The survey said three in five firms expected to give equal to or more than a 9% increase this year.
The latest projection suggests that businesses are adjusting compensation strategies in response to evolving market conditions.