The corporate sector in India is set to witness a slight dip in average salary hikes in 2025. As per the Deloitte India Salary Increase Survey, the projected salary hike is 8.8%, down from 9% in 2024. This decline is due to global economic uncertainty, inflationary pressures, and financial constraints across industries.
Key Report Highlights
| Factor | Insights |
|---|---|
| Average Pay Hike | Estimated at 8.8%, lower than the previous year. |
| Trends Across Industries | Tech, e-commerce, and pharma to see slightly higher hikes, while manufacturing and BFSI will see lower increments. |
| Economic Conditions | Companies are being cautious due to global downturn, geopolitical issues, and inflation. |
| Performance-Based Hikes | A stronger pay-for-performance culture, rewarding top performers with higher increments. |
Reasons for Declining Salary Hikes
- Global Uncertainty: Economic slowdown and market unpredictability impact salary structures.
- Cautious Spending: Companies focus on cost optimization and controlled salary budgets.
- AI and Automation Impact: Mid-skill jobs are declining, reducing demand for certain roles.
Industries Likely to See Strong Salary Growth
| Sector | Reasons for Growth |
|---|---|
| Tech & IT Services | High demand for AI, Data Science, and Cybersecurity specialists. |
| Health & Pharma | Continuous R&D and innovation keep salaries competitive. |
| E-commerce & Startups | Digital transformation and growing consumer demand fuel increments. |
Employee Expectations in 2025
- Only top-performing employees may see double-digit hikes.
- Companies are focusing on non-monetary benefits, including learning programs, flexible work, and well-being initiatives for retention.
Conclusion
The job market in India will remain competitive, with salary growth driven by upskilling. As companies adapt to economic shifts, structured salary planning will focus on performance-based pay in 2025.
FAQs
Will salaries still increase in 2025?
Yes, but at a lower rate of 8.8% on average.
Which sectors will see the highest hikes?
Tech, pharma, and e-commerce are expected to lead.
Why are Pay Raises slowing down?
Due to global uncertainty, cost control, and automation impacts.
Who will get the highest salary increments?
Top performers in high-demand skills like AI and Data Science.
Are companies offering other benefits?
Yes, including learning programs, flexible work, and wellness perks.