Aon, a global professional services firm, has announced the findings from the first phase of the 30th Annual Salary Increase and Turnover Survey 2024-25. The study revealed that salaries in India are projected to increase by 9.5 percent in 2025, compared to an actual increase of 9.3 percent in 2024.

Aon said that the study is the largest and most comprehensive rewards survey in India. It analysed data across 1,176 companies from over 40 industries between July and August 2024.

Phase one of the study shares the current year’s actual increase and gives an early indication of the salary increase to be expected in 2025. Phase two of the study will include data collected in December and January and will be published in early 2025.

Salary Trends In India 2025

Looking ahead to 2025, salaries across industries in India continue to vary. The engineering and manufacturing and retail industries project double-digit increases at 10 percent, closely followed by financial institutions at 9.9 percent indicating the strategic importance employers place on talent in these sectors in the current economic landscape.

Although the year started on a cautious note for the technology sector, the sentiment is optimistic as we enter 2025. Global capability centres and technology products and platforms expect a more optimistic salary increase at 9.9 percent and 9.3 percent, respectively, while the technology consulting and services projected increments at a lower end of 8.1 percent.

Looking at the attrition analysis, a downward trend is apparent with attrition reported at 16.9 percent on average this year, compared to 18.7 percent reported in 2023 and 21.4 percent reported in 2022.

Roopank Chaudhary, partner and head of reward solutions in India for Aon, said, “Despite evolving global economic challenges, our 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.”

“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.

Tarun Sharma, associate director for talent solutions in India for Aon, said, “The softening in attrition provides businesses a unique opportunity to focus on internal growth, capability building and driving long-term productivity. By cultivating and developing talent internally, firms can reduce the necessity for higher costs associated with new hires while simultaneously enhancing their organisation’s employee value proposition.”