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New Delhi: Aon, a leading global professional services firm, has released the first phase of its 30th Annual Salary Increase and Turnover Survey for 2024-25. The survey reveals that salaries in India are expected to rise by 9.5 per cent in 2025. This is a slight increase from the 9.3 per cent actual hike recorded in 2024.
Survey Sample Size
The survey, which is the largest and most detailed of its kind in India, gathered data from 1,176 companies across over 40 industries between July and August 2024. This phase provides insights into the current year’s salary trends and offers an early projection for 2025. Aon will publish phase two of the study in early 2025, with additional data collected in December and January.
Salary Trends For 2025
The survey shows that salary hikes will differ across sectors in India. Engineering, manufacturing, and retail industries are expected to see the highest increases, with projected raises of 10 per cent. Financial institutions are also set for a significant hike at 9.9 per cent.
What Is The Outlook For Technology Sector?
For the technology sector, which began 2024 cautiously, the outlook is now positive as we approach 2025. Global capability centers and technology platforms anticipate salary increases of 9.9 per cent and 9.3 per cent, respectively, while technology consulting and services project a lower hike of 8.1 per cent.
What About Attrition Rate?
The survey also found a noticeable decrease in employee turnover. The average attrition rate dropped to 16.9 per cent in 2024, down from 18.7 per cent in 2023 and 21.4 per cent in 2022. This downward trend offers businesses a unique opportunity to focus on internal growth and capability building.
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What Officials Said?
Roopank Chaudhary, Aon’s partner and head of reward solutions in India, commented on the positive outlook across various sectors, despite global economic challenges. “Our study shows that several industries in India are optimistic, especially in manufacturing, life sciences, and retail, where salary increases are expected to be higher. Companies must stay updated with market data and trends to retain top talent and maintain a strong workforce,” he said.
Tarun Sharma, associate director of talent solutions at Aon, highlighted the opportunity presented by the lower attrition rate. "With attrition softening, businesses can focus on nurturing internal talent, which is more cost-effective than hiring externally. By developing employees within the company, organizations can improve productivity and strengthen their overall value proposition to workers," Sharma explained.
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