Modest Salary Hikes in 2025: A Mixed Bag for Indian Employees

As the 2025 appraisal season approaches, Indian employees face a mixed outlook. Salary increments are expected to average 9.4%, down from 9.7% in 2024. The IT sector will see slower growth at 8.2%, while automotive and FMCG industries lead with 10.5% hikes. Despite this, 47% of professionals remain unhappy with their salaries, and 77% expect raises. High-demand skills in AI, ML, and blockchain could fetch 10-12% increases, while basic IT roles may see only 5%. The manufacturing sector anticipates 9.5% growth. Companies are focusing on retaining key talent through promotions and bonuses. With overall attrition rates declining, except in IT-enabled services, the job market shows signs of stabilization. However, the gap between expectations and reality may drive some employees to seek new opportunities.

 

Sources: Financial Express, Business Standard, Economic Times, India Today, CNBC TV18