The survey predicts a 9.5% wage hike for Indian workers in 2025

Aon, a global professional services company, announced the results of the first phase of its 30th annual Compensation Growth and Employee Turnover Study 2024-2025. The study shows that wages in India are expected to increase by 9.5% in 2025 compared to an actual increase of 9.3% in 2024.

Aon said the study is the largest and most comprehensive compensation study in India. It analyzed data from 1,176 companies from over 40 industries from July to August 2024.

The first stage of the study presented the actual increase in wages this year and provided preliminary information on the expected wage increase in 2025. The second stage of the study will cover data collected in December and January and will be published in early 2025.

Salary trends in India 2025

Looking ahead to 2025, salaries continue to vary across industries in India. The engineering AND production AND retail industries are forecasting double-digit growth at 10 percent, closely followed by financial institutions at 9.9 percent, highlighting the strategic importance that employers place on talent in these sectors in the current economic landscape.

While the year has started cautiously for the technology sector, sentiment is optimistic as we enter 2025. Global Capability Centers and Technology Products and Platforms are expecting more optimistic salary increases of 9.9% and 9.3% respectively, while technology consulting and services forecast growth at the low end of 8.1%.

Analyzing the consumption analysis, there is a downward trend – this year the indicator averaged 16.9% compared to 18.7% in 2023 and 21.4% in 2022.

Roopank Chaudhary, Partner and Head of Compensation Solutions at Aon, said: “Despite evolving global economic challenges, our research points to positive business prospects across several sectors in India. This sentiment continues across many domestically driven sectors, as illustrated by projected growth in manufacturing, life sciences and retail.”

“Organizations committed to retaining talent in a competitive labor market must stay current with changing market data and understand rapidly changing compensation trends. Having a holistic compensation strategy powered by data and analytics will ensure organizations attract and retain the right talent and continue to build a resilient workforce,” Chaudhary added.

Tarun Sharma, Associate Director, Talent Solutions, India, Aon, said, “Mitigating losses provides companies with a unique opportunity to focus on internal growth, building capacity and increasing long-term productivity. By cultivating and developing talent internally, companies can reduce the need for higher costs associated with new hires while increasing the value proposition for their organization’s employees.