According to WTW’s latest Salary Budget Planning Report, India is projected to experience a median salary increase of 9.5 percent in 2025. This anticipated increase mirrors the actual salary rise of 9.5 percent recorded in 2024, highlighting a consistent trend in salary growth within the country. The report underscores India’s position as an emerging market in the Asia Pacific region, where it is set to achieve the highest salary increase compared to its regional counterparts.
For instance, Vietnam is projected to see a salary increase of 7.6 percent, while Indonesia follows with a 6.5 percent rise.The Philippines is expected to experience a 5.6 percent increase, and both China and Thailand are projected to see a more modest salary increase of 5 percent in the upcoming year.
The survey has also provided with the year wise projected and actual salary increase for the companies in India, have a look:
WTW’s survey also indicates that around 46 percent of companies in India expect their salary increase budgets for 2025 to remain similar to those of 2024, while 28 percent anticipate that their budgets will likely be lower than projected.
Which sector will see the highest budgeted salary increase trend?
According to the survey, the pharmaceuticals sector is projected to see a salary hike of 10 percent, followed closely by manufacturing at 9.9 percent, insurance at 9.7 percent, captives and SSO sectors also at 9.7 percent, retail at 9.6 percent, and software and business services at 9 percent.
Here is a sector-wise budgeted salary trend compared to the 2024 hike
The Salary Budget Planning Report is compiled by WTW’s Rewards Data Intelligence practice. The survey was conducted in April and June 2024. Approximately 32,000 responses were received from companies across 168 countries worldwide. The survey had 709 participants from India, reports PTI.
This data indicates not only India’s robust economic growth but also reflects the increasing demand for skilled labor in the country, which is crucial for sustaining competitive salaries in a dynamic job market. As companies continue to navigate the complexities of attracting and retaining talent, these projected salary increases will play a significant role in shaping employment strategies across various sectors.
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