India’s voluntary attrition rate remains the highest in APAC

India’s voluntary attrition rate remains the highest in the Asia Pacific region, says a report by global advisory, broking and solutions company, WTW. Compared to 11 per cent in 2023, however, the voluntary attrition rates in India have come down a wee bit to 10.8 per cent in 2024.

When it comes to hiring, nearly 28 per cent of Indian companies intend to increase headcount in the next one year. However, in 2025, a good 68 per cent of Indian firms will maintain the same headcount as this year.

It is predicted that the median salary in India will go up by 9.5 per cent in 2025, just as the actual salary hike of 9.5 per cent in 2024.

About 46 per cent Indian employers project that their salary hike budgets for 2025 will be almost the same as this year’s. About 28 per cent, however, expect their salary budgets to be below projections, given the inflation, tight labour market and fears of recession.

The Salary Budget Planning Report compiled by WTW’s Rewards Data Intelligence practice, has taken into account about 32,000 responses as part of a survey conducted in April and June 2024. Of these, 709 participants were from India.

As per the survey, salary increases in India, which happens to be an emerging market in APAC, continue to be the highest in the region. Salary increment projections for 2025 are strong for Indonesia (6.5 per cent), Vietnam (7.6 per cent), the Philippines (5.6 per cent), China (5 per cent) and Thailand (5 per cent) too.

Clearly, employers as well as employees are inclined towards stability now.

For 2025, salary hikes across industries —such as the pharmaceuticals (10 per cent), manufacturing (9.9 per cent), insurance (9.7 per cent), and retail (9.6 per cent)— are projected to be above the general industry salary median of 9.5 per cent. On the other hand, salary for the software and business services industries at nine per cent are projected below the general industry median.

Variable payouts will show consistency at 12.5 per cent close to the 12.6 per cent this year. With performance becoming the priority for most employers, a significant part of the variable pay budgets will be set aside for the top performers. Top performers will earn thrice the hike of average performers. Above-average performers are expected to be paid 1.2 times the hike of average performers, as per the report.