Aon India has projected a salary increase of 9.2% across corporate India in 2025, marking the lowest hike since the Covid-19 pandemic. Despite this modest increase, real wage growth is expected to reach 5.1%, the highest since 2018, owing to falling inflation. The survey, which included 1,400 companies across various sectors, provides a comprehensive outlook on salary trends and economic conditions in the country.
This as the Indian economy is expected to grow at 6.4% in the current fiscal year, marking the slowest pace in four years, according to the government. The finance ministry's Economic Survey forecasted growth for the next fiscal year (FY26) to be between 6.3% and 6.8%.
The global economy is expected to stabilise, providing a conducive environment for growth in emerging markets like India.
There is a notable variation in both merit and non-merit salary increases across different management levels. Top and senior management are projected to see lower increases compared to middle and junior management, Aon India charts showed.
The survey provides detailed insights into sector-wise salary increments, with sectors like engineering design services, technology platforms, and e-commerce expected to see significant increases. Other sectors such as chemicals, NBFC, and financial institutions also show promising projections.
Aon India's projection of a 9.2% salary increase for 2025 reflects the current economic conditions and the impact of inflation on real wage growth.
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