Image Source : INDIA TV Salaries in India to rise 9.5 per cent by 2025 led by engineering, manufacturing sectors: Report
According to Aon plc’s ‘30th Annual Salary Increase and Turnover Survey’, salaries in India by 2025 are expected to grow by 9.5%. This is a slight increase over the 9.3% wage growth expected for 2024. Engineering, construction and retail are expected to lead with double-digit wage growth of 10%, and financial institutions with wage growth of 9.9%.
“Despite evolving global economic challenges, our study indicates a positive business outlook across several sectors in India. This sentiment continues in many of the domestically-driven sectors illustrated by the projected increments in the manufacturing, life sciences and retail industries,” Aon partner and head of reward solutions in India Roopank Chaudhary said.
Wage trends in a particular category
The study found that technology earnings are also expected to increase, with global skill centers and technology products/platforms delivering earnings growth of 9.9% and 9.3% respectively. However, technical advice and services are forecast to grow modestly at 8.1%.
Focus on retaining talent amid a low crisis
India’s attrition rate is expected to decline to 16.9% in 2024, from 18.7% in 2023. Experts pointed out that this decline gives companies a unique opportunity to focus on internal talent development, and reduces the need for new hires if it is expensive. The study highlighted that companies and compensation policies need to follow suit to be competitive in retaining talent.
Research findings
The survey of more than 1,176 companies across 40 industries highlighted Indian companies’ ongoing efforts to adapt economic challenges, prioritising talent retention.
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