As employees look forward to salary hikes, recent findings from AON PLC’s Annual Salary Increase and Turnover Survey for 2024-25 reveal concerns about salary increments in India. The data suggests that this year’s average salary increase may disappoint, potentially falling below last year’s levels. With the global economy facing uncertainty and subdued growth, understanding these trends can help professionals navigate their career expectations and compensation negotiations.
Understanding Salary Increment Trends in India
Continued Decline Over the Years
According to the survey, the trend of declining salary increments has been evident since 2022 when companies were offering an average salary hike of 10.6%. AON’s latest report indicates that the average salary increase for this year is projected at 9.2%, slightly down from 9.3% in the previous year. This marks a shift in employer strategies, where companies are now more cautious in their compensation decisions, influenced by the economic climate and shifting workforce dynamics.
Reasons Behind the Decrease in Salary Hikes
The analysis reveals that the past couple of years have been characterized by the “Great Resignation,” which compelled employers to offer higher salaries to retain talent. However, with a stabilization in job market trends, employees are now taking a more measured approach before leaving their positions. Recent data indicates a noticeable reduction in the number of employees opting for job changes, suggesting a potential shift in workforce sentiment.
Sectors Anticipated to Experience Salary Growth
AON’s study incorporated data from over 1,400 companies spanning 45 different industries. The findings highlight certain sectors that are expected to witness significant salary increments, providing a promising outlook for employees in these fields.
Industries with Projected Salary Increases
- Engineering Design Services
- Automobile and Vehicle Manufacturing
- Non-Banking Financial Companies (NBFCs)
- Retail Sector
- Global Capability Centers (GCCs)
- Life Sciences and Healthcare
Conclusion: Preparing for the Future
In summary, while the overall outlook for salary increments in India may appear cautious, certain sectors are poised for growth. Employees in industries such as engineering design, healthcare, and retail may find more favorable conditions for salary hikes in the coming year. Understanding these dynamics allows professionals to make informed decisions about their careers and compensation, ensuring they are well-prepared for the evolving job market.