Salaries in India are projected to rise by 9.2% in 2025, with the manufacturing sector and Global Capability Centres (GCCs) leading the way, according to Aon’s annual ‘Salary Increase and Turnover Survey 2024-25 India’.
This marks a slight decline from the 9.3% increase observed in 2024, reflecting ongoing global uncertainties and moderated growth expectations.
Sector-Specific Projections:
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Manufacturing Sector: Engineering design services and automotive manufacturing are anticipated to offer the highest salary increments, underscoring the sector’s robust performance.
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Global Capability Centres (GCCs): Salaries within GCCs are expected to rise by 9.8% in 2025, up from 9.6% in 2024. This increase reflects a shift in talent management strategies amid ongoing economic challenges.
Economic Context:
Despite external uncertainties, India’s economic prospects remain stable, with rural demand improving and private consumption maintaining momentum.
However, factors such as geopolitical developments, potential impacts of U.S. trade policies, conflicts in the Middle East, and rapid advancements in generative AI are influencing corporate salary budgets.
Talent Dynamics:
The study also revealed a decline in overall attrition rates to 17.7% in 2024, down from 18.3% in 2023 and 21.4% in 2022, indicating a stabilization in the talent market post the ‘Great Resignation’.
This stability presents an opportunity for companies to focus on strategic workforce skilling, reskilling, and providing institutional support to retain talent.
In summary, while salary increments in India are experiencing a slight moderation, sectors like manufacturing and GCCs continue to demonstrate resilience, offering competitive compensation to attract and retain skilled professionals in a dynamic economic landscape.
