Survey reveals 9.5% salary hike for Indians next year as job market prepares for growth: Here's what this means

The first phase of the Aon Annual Salary Increase and Turnover Survey for 2024-25 reveals an encouraging outlook for India's workforce, with an average salary increase of 9.5% projected for the upcoming year¡ªslightly up from the 9.3% rise recorded in 2024. Key sectors such as engineering, manufacturing, retail, and finance are expected to lead this upward trend. Coupled with other surveys indicating a boost in hiring, the Indian job market appears set for a positive shift in the year ahead.

Which sectors are expected to see the most salary hikes in 2025?

The survey by the professional services firm Aon states that employees in sectors like professional services, engineering, manufacturing, retail, and global capability centers are expected to receive larger salary increases than those in other industries.

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"Despite evolving global economic challenges, our study indicates a positive business outlook across several sectors in India," said Roopank Chaudhary, Aon¡¯s partner and head of reward solutions in India. "This sentiment continues in many of the domestically-driven sectors illustrated by the projected increments in the manufacturing, life sciences and retail industries.¡±

This Aon 30th India's Annual Salary Increase and Turnover Study was based on inputs from more than 1,176 organisations across 40 industries.

What the Indian job market looks like in 2025: A look at numbers

Additionally, a survey by Teamlease Services indicates that the Indian job market is projected to experience a notable 6.33% increase in workforce expansion or new job creation in the first half of FY25 (April-September), a rise from approximately 4.2% in the second half of FY24 (October-March).

The sectors expected to see the most significant growth in workforce size include construction and real estate (11.5%), travel and hospitality (9.86%), and electric vehicles (EV) and EV infrastructure (9.17%).

Even the IT sector, which has faced hiring challenges this year, is set for substantial growth, with an anticipated 8.5% increase in job roles by 2025 - as per Indeed, a global job matching and hiring platform.

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Sashi Kumar, Head of Sales at Indeed India, explained, ¡°Recent quarters saw a slowdown in hiring, with companies exercising caution as they navigated through global uncertainties and economic shifts. Now, the tide is turning. Companies are actively ramping up their hiring efforts. We can also expect Global Capability Centers to significantly contribute to this uptick in hiring, particularly in software and technological roles.¡±

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