Salaries in India to Rise by 9.2% in 2025: Aon Report

Salaries in India are expected to increase by 9.2% in 2025, according to a study by Aon. This rise is slightly lower than the 9.3% increase in 2024. The study analyzed data from over 1,400 companies across 45 industries. Despite global uncertainty and softening growth, India’s economic prospects remain stable. Rural demand is improving, and private consumption is maintaining momentum.

The highest salary increases are expected in engineering design services and auto/vehicle manufacturing, with a projected rise of 10.2%. Non-banking financial companies are expected to see a 10% increase. The overall attrition rate has declined to 17.7% in 2024 from 18.7% in 2023 and 21.4% in 2022, indicating a larger talent pool post the Great Resignation.

The study also highlights the importance of strategic workforce skilling, reskilling, and institutional support. Companies are advised to adopt a hands-on approach to total rewards and compensation practices and leverage AI-driven innovation to achieve sustainable growth.