Business Standard

Saturday, January 18, 2025 | 02:35 PM ISTEN Hindi

Notification Icon
userprofile IconSearch

Average salary hike in India projected to be 9.4% in 2025: Report

The automotive sector leads with anticipated increments of 10 per cent from 8.8 per cent, driven by the surge in electric vehicles and the government-led 'Make in India' initiative

Working Women, Employee

Over the last five years, salary increments have steadily increased, rising from 8 per cent in 2020, to a projected 9.4 per cent in 2025. | Photo: Shutterstock

Press Trust of India Mumbai

Listen to This Article

Indian employees may expect an average salary increment of 9.4 per cent this year across industries, indicating strong economic growth and rising demand for skilled talent, a report said on Tuesday.

Over the last five years, salary increments have steadily increased, rising from 8 per cent in 2020, to a projected 9.4 per cent in 2025, according to Total Remuneration Survey (TRS) by HR consulting firm Mercer.

The automotive sector leads with anticipated increments of 10 per cent from 8.8 per cent, driven by the surge in electric vehicles and the government-led 'Make in India' initiative.

Manufacturing and engineering follow closely with an increase from 8 per cent to 9.7 per cent, reflecting a resurgence in the manufacturing ecosystem.

 

More than 1,550 companies in India participated in the survey, spanning diverse industries, such as technology, life sciences, consumer goods, financial services, manufacturing, automotive, and engineering.

Further, the report revealed that in 2025, 37 per cent of organisations plan to increase their headcount reflecting India's vibrant talent demand across diverse sectors.

Voluntary attrition is expected to stabilise at 11.9 per cent, with Agriculture and Chemical (13.6 per cent) and Shared Services Organisations (13 per cent) experiencing the highest rates, indicating a competitive talent market.

It is also expected that this year some organisations will focus on strategic recruitment, competitive compensation, upskilling, and employee engagement to attract talent, reduce turnover, and sustain growth to address workforce demands.

"India's talent landscape is experiencing a remarkable transformation. Pay premiums are also reshaping the workforce, additionally, the increased adoption of performance-linked pay plans by more than 75 per cent of organisations, signifies a holistic shift towards performance orientation, both in the short term and long term.

"Companies that prioritise these trends will be better positioned to attract and retain talent in a competitive market," Mercer's India Careers Leader Mansee Singhal said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jan 14 2025 | 6:44 PM IST

Explore News