Indian salaries are expected to rise 9.5 percent in 2025, more than the actual growth of 9.3 percent in this year, a report said Thursday.
Doubling-digit increase is also projected in the engineering and manufacturing and retail industries, behind only financial institutions with a 9.9 percent increase, meaning talent is the strategic advantage employers in those sectors want to achieve in the current economic environment as Aon, a global professional services firm, concludes in its report.
The outlook for average salary increase was positive for Global capability centers and technology products and platforms at 9.9 percent and 9.3 percent respectively while increases in technology consulting services were expected on the lower end with an 8.1 percent projected increase.
On attrition analysis, the trend was downwards with attrition reported at 16.9 percent on an average for the year as against 18.7 percent attrition rate in 2023 and 21.4 percent in 2022.
Against this backdrop of changing global economic conditions, the report presents a bright business climate in a number of industries in India. This is very well reflected in many of the domestic-led sectors based on projected increases in the manufacturing, life sciences and retail industries," says Roopank Chaudhary, partner and head of reward solutions in India for Aon.
The study is the largest and most comprehensive rewards survey in the country, having culled information from 1,176 companies from more than 40 industries between July and August.
Organisations committed to retaining talent in a competitive job market should keep up-to-date with changing market data and understand the rapidly shifting compensation trends.
Having an over-arching, data and analytics-driven rewards strategy in place will ensure organisations are attracting and retaining the right talent to continue building a resilient workforce, Chaudhary added.
Attribute of attrition softening provides business an unique opportunity to focus in-house growth, capability building, and driving long-term productivity: associate director at Talent Solutions, India, Aon Tarun Sharma.
Data generated in December and January will be the second phase of the study, the firm said, whose results will be published at the start of 2025.
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