Salary Hike 2025 Update: If you are employed and waiting for a salary hike, there is big news for you. According to leading global professional services firm Aon plc, salary hikes in India for 2025 are expected to be 9.2% on average, slightly lower than 9.3% last year.
As per Aon’s Annual Salary Increase and Turnover Survey 2024-25, despite global uncertainty and slow growth, India’s salary growth remains stable. The country’s economy is expected to continue its steady growth in 2025.
Salary Hike Trends in 2025: What to Expect?
The decline in Salary Growth and Attrition
A study analyzing data from over 1,400 companies across 45 industries has revealed a declining trend in salary increases. In 2022, when companies were impacted by the Great Resignation, the average salary hike was 10.6%. However, this has been decreasing since then. In 2025, the salary hike is expected to be 9.2%, down from 9.3% in 2024.
Additionally, the attrition rate is expected to decline from 21.4% in 2022 and 18.7% in 2023 to 17.7% in 2024. This reflects a larger talent pool becoming available after the wave of mass resignations in recent years.
Factors Affecting Salary Hikes
Industry experts suggest that various external factors are influencing salary trends, such as:
- Geopolitical and economic developments
- US trade policies
- Conflicts in the Middle East
- Rapid advancements in AI
Despite these uncertainties, India’s economic outlook remains stable, supported by rising rural demand and strong private consumption.
Appraisal Time Around The Corner…#Salary hike expectations in 2025 by Aon Survey predicts
– Overall increase of 9.2%
– Auto sector to lead
– Banking sector to see the lowest hike@shivanibazaz with the details. pic.twitter.com/UJ42ocZeaI— CNBC-TV18 (@CNBCTV18News) February 19, 2025
Which Industries Will See the Highest Salary Hikes?
The study highlights that salary hikes will vary across industries. The highest salary increases are expected in:
- Engineering Design Services – 10.2%
- Auto/Vehicle Manufacturing – 10.2%
- Non-Banking Financial Companies (NBFCs) – 10%
The Future of Salary Growth
Experts emphasize that companies are adopting a more cautious approach to salary hikes due to market pressures. They also suggest that AI-driven innovations and strategic compensation planning will play a key role in India Inc.’s sustainable growth.