(IANS): In a promising sign for the Indian job market, a new report forecasts significant salary hikes for employees across various sectors in 2025. The study, conducted by Aon, reveals that salaries are expected to surge by 9.5 percent next year, outpacing this year’s actual increase of 9.3 percent.
The report, released on Thursday, showed that salaries in India are projected to increase by 9.5 percent in 2025, compared to 9.3 percent this year.
According to the report by Aon, a leading global professional services firm, the engineering, manufacturing, and retail industries project double-digit salary hikes of 10 percent, closely followed by financial institutions at 9.9 percent. This indicates the strategic importance employers place on talent in these sectors in the current economic landscape.
Global capability centers (GCCs) and technology products and platforms expect a more optimistic salary increase of 9.9 percent and 9.3 percent, respectively, while technology consulting and services projected increments at the lower end of 8.1 percent.
The attrition analysis shows a downward trend. On average, this year’s attrition was 16.9 percent, compared to 18.7 percent in 2023 and 21.4 percent in 2022.
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“Despite evolving global economic challenges, the 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,” said Roopank Chaudhary, partner and head of reward solutions in India for Aon.
The study, the country’s largest and most comprehensive rewards survey, analysed data across 1,176 companies from over 40 industries between July and August.
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,” Chaudhary added.
According to Tarun Sharma, associate director for Talent Solutions in India for Aon, the softening in attrition provides businesses a unique opportunity to focus on internal growth, capability building, and driving long-term productivity. Phase two of the study will include data collected in December and January and will be published in early 2025, said the firm.
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