The data reveal that the forecast expected average salary increase in India business is 9.5% of its employees in 2025 which was found similar to the real wage increase observed in 2024. This according to the latest forecast from WTW (Willis Towers Watson) reflects the ongoing trend of stabilisation of employee’s remuneration in many sectors.
Sector-wise Salary Trends
According to the report the pharmaceutical sector is set to be awarded the highest salary raises with percentage raises brought to about 10%. Other industries like manufacturing (9.9%), insurance (9.7% ) and retail (9.6% ) will also be expected to more than average growth rate. On the other hand, Software and business services may likely to obtain a moderate growth of 9% which slightly below the industry average.
Comparison with Global Trends
Then and now India has one of the sturdiest salaries growth rates among the countries of the region. Indonesia is expected to follow at 6.5%, the Philippines 5.6%, China 5%, Thailand 5%, and Vietnam 7.6% all trailing India on estimated salary increments for the year. The report encompasses 32,000 entries, 168 countries where Indian businessmen aim superior employee remunerations.
Optimism Amid Caution
According to Rajul Mathur, head of advisory at WTW India, although firms are looking forward to an improvement in revenue, they are currently doing so prudently.
We have seen a massive wave of people resigning in the previous years, but that wave seems to be dying down, and everybody now seems to want some level of stability in their jobs. This change in sentiment is evidenced in the market which I believe is now entering a period of consolidation.
Performance-Based Pay
Other elements that are also attracting attention are in the formula; tied to performance, for example. While star performers get up to three times more than the average performers in terms of salary increase, performers, doing better than average would get an increase a little over 1.2 times the average performer.
Moreover, approximately 28% of firms claim that they will offer new jobs to employees in the next financial year, which seem to indicate a proactive attitude towards increasing staff numbers.
Employee Turnover Rates
However, all these forecasts are optimistic in nature; in fact the voluntary turnover rate in India is still high, it is 10.8 % in 2024 and 11% in 2023. Also, close to 46 % of the firms expect their salary budget for 2025 to be at par with 2024, approximately 28 % of firms expect their budget estimates to decrease.
