Salaries are predicted to grow at a slightly slower rate in 2025, with an average increase of 9.4%, down from 9.7% in 2024, according to a survey by Omam Consultants, a human resources consulting firm.
Industry-wise salary growth projections
Industries such as automotive, fast-moving consumer goods (FMCG), and pharmaceuticals are expected to experience double-digit growth. However, the IT and IT-enabled services (ITES) sectors are anticipated to see slower increases, with projected salary hikes of 8.2% and 8%, respectively, signalling a deceleration in India’s once-booming technology industry.
The automotive and FMCG sectors are projected to lead the pack, with a 10.5% salary increase each, followed closely by e-commerce and pharmaceuticals at 10% each, based on Omam Consultants’ latest Salary Projection Survey. This survey draws on responses from over 100 organizations across 10 different industries.
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Notably, despite these double-digit salary hikes, most of these sectors—except for automobiles—are expected to see stagnation or a decrease in salary growth compared to 2024.
The manufacturing, chemicals, and consumer durable sectors are predicted to see a more modest 9.5% increase, aligning with the overall average salary growth.
Declining attrition rate
The survey also noted a decline in the overall attrition rate, with the average dropping to 13.6% in 2025, down from 13.75% in 2024 and 17.09% in 2022. The most notable decrease occurred in the banking and financial services sectors, where attrition fell from 22.3% in 2023 to 18% this year. In contrast, ITES companies are seeing a rise in attrition to 20.2%, reflecting employee dissatisfaction and the instability of the job market.
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Although salary growth is slowing, the demand for professionals with expertise in Generative AI (GenAI) is surging. The report reveals that companies are willing to offer salaries up to 54% higher for individuals with AI skills.
Businesses are increasingly seeking professionals with data science and analytics capabilities, including advanced statistical analysis, SQL proficiency, and knowledge of visualisation tools like Tableau and Power BI. The highest pay increases are expected for IT and R&D professionals.
The survey also suggests that companies are likely to offer a 7.5% raise for promotions in order to retain critical talent.
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