Salary Hike: Engineering, manufacturing and retail industries are expected to see a 10 percent salary hike. On an average, 16.9 percent of employees left their jobs this year. Whereas this ratio was 18.7 percent in 2023 and 21.4 percent in 2022.
Amid positive business scenario in various sectors of the economy, India is expected to see a 9.5 percent salary hike in the next calendar year. This possibility has been expressed in a survey report. According to the ’30th Annual Salary Increase and Business Survey’ of global professional services firm Aon PLC, the total salary of employees is expected to increase by an average of 9.5 percent in the year 2025. Whereas in the current calendar year 2024, the salary will increase by 9.3 percent. According to the survey report, engineering, manufacturing and retail industries are expected to see a 10 percent salary increase. This can be followed by a salary increase of 9.9 percent in financial institutions. Although the year 2024 started with caution for the technology sector, employees of global capability centers and technology products and platforms are expected to get a salary increase of 9.9 percent and 9.3 percent respectively.
Increment will be low in technology consulting and service sector
However, salary increase in technology consulting and service sector may remain at a low level of 8.1 percent. Rupank Chaudhary, Partner, Aon, said, “Despite global economic challenges, our study shows a positive business scenario in many sectors in India. This sentiment continues in many sectors growing on the strength of the local market and is evident from the projected salary increase in manufacturing, life sciences and retail industries.” According to the survey, to retain talented employees in the competitive job market, organizations should stay aware of the changing market data and understand the rapidly evolving salary trends.
Decrease in job attrition rate
According to the report, an average of 16.9 percent of employees left their jobs this year. Whereas this ratio was 18.7 percent in 2023 and 21.4 percent in 2022. Tarun Sharma, Co-Director (Talent Solutions), Aon, said, “The softening of the job attrition rate provides a unique opportunity for companies to focus on internal development, capacity building and increasing long-term productivity. “By developing talent internally, firms can reduce the high costs associated with new hires.” The Aon survey was based on information from over 1,176 employer organisations across 40 industries.
