Skilled Talent Drives Salary Hikes Across Key Industries in 2025
Hyderabad: The evolving workplace sphere is seeing significant changes as salary trends shift upward, particularly in sectors that rely heavily on skilled professionals. According to Aon’s latest Annual Salary Increase and Turnover Survey, the average salary hike for 2025 is projected at 9.5 per cent, with industries like engineering, manufacturing, and retail offering offering increases at around 10 per cent.
The surge in wages points to a larger trend — skilled professionals are in high demand, and employers are willing to pay more to retain top talent.
Ramesh Alluri Reddy, chief executive officer of TeamLease Degree Apprenticeship, told Deccan Chronicle: “This salary surge reflects the critical importance employers place on attracting and retaining top-tier talent, while also underscoring the pivotal role that skilled professionals play in driving industrial growth.”
This sentiment is echoed across the board, with sectors such as semiconductors, electric vehicles (EV), and green energy also seeing a rise in demand for specialised talent. Salary increases in these emerging fields, ranging from 10-12 per cent, further highlight the strategic importance of skills in driving industrial progress.
However, a significant challenge remains in India’s skilling ecosystem, with only 51.25 per cent of the country’s youth deemed employable.
Sri Charan Lakkaraju, founder and CEO of Student Tribe, explained how upskilling has shifted in response to the changing job market. “Students and learners are no longer interested in just the basics; rather they are seeking to upgrade their skills in the latest technologies. This has given rise to a new avatar of corporate training cohorts where industry professionals themselves serve as instructors and mentors,” he said. “Any down time in IT market is the right time to invest on oneself."
This shift is vital as India’s workforce faces a new reality - employability depends not just on formal education, but on the continuous development of industry-relevant skills. Apprenticeships, reskilling, and upskilling programmes are crucial in this context, equipping workers to meet the demands of fast-evolving industries like technology, manufacturing, and green energy. As Reddy noted, “Efforts to align skilling, including upskilling and reskilling, with industry needs are essential to ensure a future-ready workforce capable of driving innovation, productivity, and sustained economic growth.”