India Inc is projected to witness an average salary increase of 9.2% in 2025, a slight dip from the 9.3% hike in 2024, as companies grapple with global economic uncertainties, including former U.S. President Donald Trump’s trade policies and a slowing global economy, according to the latest Aon salary survey.
The annual survey, now in its 30th year, analyzed salary data from over 1,400 companies across 45 industries. The findings indicate a continuing downward trend in salary increments since 2022, when companies offered a record 10.6% increase, driven by the Great Resignation of 2021. During the COVID-19 pandemic, businesses faced an unprecedented wave of voluntary resignations, compelling them to hike salaries to retain talent.
Despite external challenges, India’s economic outlook remains resilient, bolstered by rising rural demand and sustained private consumption, according to Roopank Chaudhary, Partner and Rewards Consulting Leader for Talent Solutions at Aon.
“The downward trend in salary increments reflects global economic and geopolitical shifts, including the impact of U.S. trade policies, conflicts in the Middle East, and rapid advancements in generative AI,” Chaudhary explained. With companies facing increasing margin pressures, a moderation in salary hikes is a natural outcome, he added.
The survey also highlighted a decline in overall attrition rates, dropping to 17.7% in 2024 from 18.7% in 2023 and 21.4% in 2022. This indicates an expanding talent pool in the post-Great Resignation period, driven by higher workforce participation despite a rise in self-employment and entrepreneurial ventures.
“In a globally connected world, shifting government policies, business strategies, and workforce expectations will continue to shape India’s economy and job market,” said Amit Kumar Otwani, Associate Partner for Talent Solutions at Aon.
“To stay ahead, companies need comprehensive market insights, data-driven decision-making, and advanced technology to anticipate shifts and strategically prepare for the future,” he concluded.
As India navigates global uncertainties, businesses are expected to adapt to evolving economic conditions while balancing employee expectations with financial prudence.
