Despite ongoing global uncertainty, salaries in India are projected to increase by 9.2% in 2025, according to Aon plc’s (NYSE: AON) Annual Salary Increase and Turnover Survey 2024-25. The study highlights that engineering design services and auto/vehicle manufacturing sectors are expected to witness the highest salary growth at 10.2%. In contrast, the real estate and infrastructure sector, which saw a 10.6% increase in 2024, is expected to decline to 9.7% in 2025.
However, this marks a slight dip from the 9.3% salary hike recorded in 2024, continuing the downward trend since 2022, when increments peaked at 10.6%, driven by the Great Resignation.
Industry-wise salary growth
The survey analysing data from over 1,400 companies across 45 industries, highlights industry-specific salary increments, with engineering design services and auto/vehicle manufacturing sectors expected to see the highest growth at 10.2%. Non Banking financial companies, retail, global capability centers, and life sciences are also projected to offer above-average increments.
| Industry | Actual Salary Increase (2024) | Projected Salary Increase (2025) |
|---|---|---|
| Overall India | 9.3% | 9.2% |
| Engineering Design Services | 10.1% | 10.2% |
| Automotive/Vehicle Manufacturing | 10.7% | 10.2% |
| Nonbanking Financial Companies | 10.1% | 10.0% |
| Retail | 9.6% | 9.8% |
| Global Capability Centers | 9.4% | 9.7% |
| Real Estate/Infrastructure | 10.6% | 9.7% |
| Life Sciences | 9.5% | 9.5% |
In 2025, salary increments in India are expected to slightly decline to 9.2%, down from 9.3% in 2024, reflecting a trend of moderation.
Among industries, engineering design services is projected to see the highest salary increase at 10.2%, up from 10.1% in 2024. Similarly, automotive/vehicle manufacturing is expected to experience a slight dip, with increments reducing from 10.7% in 2024 to 10.2% in 2025.
Non Banking financial companies will also see a marginal decline, from 10.1% in 2024 to 10.0% in 2025. Meanwhile, the retail sector is set for an increase, with projected increments rising from 9.6% in 2024 to 9.8% in 2025.
Global capability centres anticipate a modest rise, moving from 9.4% in 2024 to 9.7% in 2025. The real estate and infrastructure sector, which had a strong 10.6% salary increase in 2024, is expected to see a decline to 9.7% in 2025.
For the life sciences sector, salary increments are forecasted to remain steady at 9.5% for both years, indicating stability in compensation trends.
Roopank Chaudhary, Aon’s partner and consulting leader for Talent Solutions India, stated, “The projected moderation in salary increases is a response to external factors such as geopolitical and economic developments, U.S. trade policies, and advancements in AI. Companies are balancing market challenges with the need to attract and retain talent.”
Declining attrition rates
The study also highlights a drop in attrition rates, which fell from 21.4% in 2022 to 17.7% in 2024. This suggests a stabilizing job market post-Great Resignation, with a larger talent pool available due to increased labor force participation and entrepreneurial activity.