Chennai: Salaries across sectors are projected to rise by an average 9.5 per cent in 2025, up from the actual hike of 9.3 per cent in 2024. Besides employees, companies too have something to cheer about as the attrition levels in 2024 have come down compared to 2023 and 2022.
Despite evolving global economic challenges, our study indicates a positive business outlook across several sectors in India, finds Aon India, which anaylsed data across 1,176 companies from over 40 industries.
The engineering and manufacturing and retail industries project double-digit increases at 10 per cent, closely followed by financial institutions.
Although the year started on a cautious note for the technology sector, the sentiment is optimistic. Global capability centres and technology products and platforms expect a more optimistic salary increase at 9.9 per cent and 9.3 per cent, respectively, while the technology consulting and services projected increments at 8.1 per cent.
Professional services would see a lesser salary hike of 9.7 per cent against 9.9 per cent last year.
Meanwhile, a downward trend was apparent with attrition reported at 16.9 per cent on average in 2024, compared to 18.7 per cent reported in 2023 and 21.4 per cent reported in 2022.
Professional services, which is projected to see a lesser salary hike, has witnessed a high attrition rate of 22.1 per cent. Financial institutions saw the highest attrition of 27.3 per cent. The lowest attrition was in engineering and manufacturing at 12.2 per cent.
“Organizations committed to retaining talent in a competitive job market must keep abreast of changing market data and understand the rapidly evolving compensation trends,” said Roopank Chaudhary, partner and head of reward solutions in India for Aon.
