The landscape of employment in India is facing a significant shift in 2025 as multinational companies gear up to recruit young professionals at lower salaries amid growing global economic uncertainties. This trend is not limited to the Global Capability Centers (GCC) but is prevalent across various sectors that are traditionally known for offering competitive salaries. In light of the pandemic’s aftermath, these companies are preparing to hire the unemployed youth while managing costs, creating a challenging environment for job seekers.
Economic Factors Influencing Salary Trends in India
With demand in the IT sector waning, multinational enterprises are adjusting their hiring strategies to offer reduced salary increments. Experts indicate that overall performance in most sectors has not met projections, further compounded by the looming threat of global economic downturns. Companies are now adopting strategies aimed at cost savings, with a cautious approach to salary increments.
Projected Salary Increases: 8.5% to 8.7%
Typically, the average salary increment in multinational firms in India hovers around 8.8%. However, last year’s increment peaked at 9%. In response to the ongoing economic uncertainties, many foreign companies are leaning towards lowering their salary projections. Recent surveys revealed that salary growth is expected to decline to approximately 8.5% to 8.7%, marking a decrease of 0.1% to 1.1% compared to the fiscal year 2024. Anandorup Ghosh, a partner at Deloitte India, emphasized that this downward trend is predominantly due to unsatisfactory sector performance.
| Year | Average Salary Increment |
|---|---|
| 2023 | 9.0% |
| 2024 | 8.8% |
| 2025 (Projected) | 8.5% – 8.7% |
Salaries in Specific Sectors: Insights and Projections
The GCC is the only sector expecting a slight increase, projecting a salary growth of 9.1%, although this is still a 0.1% decline from the previous year. To optimize payroll expenses, GCC and other multinational companies are strategizing to leverage market opportunities. Conversely, sectors such as automotive, energy, construction materials, and engineering are estimated to see salary increments ranging from 8.8% to 9.2%.
IT Product Companies: Salary Growth Trends
Across many firms, particularly in the IT domain, layoffs and hiring slowdowns have become apparent. The recruitment process in IT is expected to remain sluggish this year, with salary increments for IT product companies dropping from 10% to 9%. Similarly, growth in the IT services sector is limited to 8.5% to 8.7%, which reflects a decline of 0.2% to 0.3% compared to last year. This persistent decline in investment and job interest within the IT field can largely be attributed to emerging technologies and uncertainties within the global market.
As we move forward, it will be critical for job seekers in India to adapt to these changing dynamics and for companies to focus on strategies that can effectively manage their talent pool while ensuring sustainable growth.