Despite ongoing global uncertainty, salaries in India are projected to increase by 9.2% in 2025, according to Aon plc’s (NYSE: AON) Annual Salary Increase and Turnover Survey 2024-25. The study highlights that engineering design services and auto/vehicle manufacturing sectors are expected to witness the highest salary growth at 10.2%. In contrast, the real estate and infrastructure sector, which saw a 10.6% increase in 2024, is expected to decline to 9.7% in 2025.
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However, this marks a slight dip from the 9.3% salary hike recorded in 2024, continuing the downward trend since 2022, when increments peaked at 10.6%, driven by the Great Resignation.
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The survey analysing data from over 1,400 companies across 45 industries, highlights industry-specific salary increments, with engineering design services and auto/vehicle manufacturing sectors expected to see the highest growth at 10.2%. Non Banking financial companies, retail, global capability centers, and life sciences are also projected to offer above-average increments.
IndustryActual Salary Increase (2024)Projected Salary Increase (2025)Overall India9.3%9.2%Engineering Design Services10.1%10.2%Automotive/Vehicle Manufacturing10.7%10.2%Nonbanking Financial Companies10.1%10.0%Retail9.6%9.8%Global Capability Centers9.4%9.7%Real Estate/Infrastructure10.6%9.7%Life Sciences9.5%9.5%
In 2025, salary increments in India are expected to slightly decline to 9.2%, down from 9.3% in 2024, reflecting a trend of moderation.
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Among industries, engineering design services is projected to see the highest salary increase at 10.2%, up from 10.1% in 2024. Similarly, automotive/vehicle manufacturing is expected to experience a slight dip, with increments reducing from 10.7% in 2024 to 10.2% in 2025.
Non Banking financial companies will also see a marginal decline, from 10.1% in 2024 to 10.0% in 2025. Meanwhile, the retail sector is set for an increase, with projected increments rising from 9.6% in 2024 to 9.8% in 2025.
Global capability centres anticipate a modest rise, moving from 9.4% in 2024 to 9.7% in 2025. The real estate and infrastructure sector, which had a strong 10.6% salary increase in 2024, is expected to see a decline to 9.7% in 2025.
For the life sciences sector, salary increments are forecasted to remain steady at 9.5% for both years,
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