Despite the growing global uncertainty, India seems to be holding on pretty well with growth expected to be stable. With one out of two companies expecting a top-line growth of over 10 per cent, the hiring sentiment is positive in the country for 2025. In fact, two out of five companies plan to increase their workforce by more than 10 per cent. The highest salary increment of 10.2 per cent is projected for the automotive/vehicle manufacturing sector in India. The lowest increment is projected for the technology consulting and services sector at 7.7 per cent. These are insights from the AON Salary Increase and Turnover Survey 2024-25 for India.
About 57 per cent companies plan to maintain their headcount, while 37 per cent plan to increase their headcount in the range of 10 to 30 per cent. About five per cent are looking at a headcount increase of more than 30 per cent. So yes, the hiring sentiment is definitely positive.
In India, salary increase in 2025 is expected to be 9.2 per cent compared to 9.3 in 2024. This is inclusive of promotions and special adjustments, that is, merit hikes as well as non-merit increments. Inflation is expected to be 4.1 per cent, which is less than the 4.4 of 2024. For India, the gross domestic product (GDP) is projected to remain the same, at 6.5.
The highest salary increment of 10.2 per cent is projected for the automotive/vehicle manufacturing sector in India. It is less than the 10.7 per cent increment that actually happened in 2024. The engineering design services sector will also see an increment of 10.2 per cent compared to 10 per cent last year. The non-banking financial companies are projected to see increment of 10 per cent, compared to 10.1 per cent in 2024.
The retail space is expected to witness increment of 9.8 per cent, followed by engineering/manufacturing, global capability centres (GCC), real estate/infrastructure and asset management, with projected increment of 9.7 per cent each. Those working in the life sciences and professional services space can expect an increment of about 95 per cent, followed by e-commerce, hospitality, energy (oil/gas) sectors with projected increment of 9.3 per cent.
The lowest increment is projected for the technology consulting and services sector at 7.7 per cent. The increments look somewhat better in the banking and life insurance space with 8.8 per cent and 8.4 per cent, respectively.
Salary increase in the UK is projected to be 4.3 per cent, same as in 2024, while inflation is projected to be 2.1 per cent, lesser than last year when it was 2.6 per cent.
In the US, the projected salary increase for 2025 is 4.5 per cent, same as last year. Inflation is projected to be 1.9 per cent, lesser than 2024 when it was 3 per cent.
The inflation in Japan is projected to be 2 per cent, a wee bit lesser than last year when it was 2.1 per cent. Salary increase is projected to be slightly more at 3.6 per cent, compared to 3.4 per cent in 2024.
In China, the salary is expected to increase by 5.3 per cent, more than the 5.1 per cent in 2024. Inflation is expected to rise from 0.4 per cent in 2024 to 1.7 in 2025.
The data is revealed in the 30th edition of AON’s salary increase and turnover survey, covering 1,400+ organisations and 45 sectors.