India Inc To Dole Out Average Salary Hike of 8.8% This Year Against 9% In 2024: Deloitte

Last Updated:March 07, 2025, 13:47 IST

The ‘Deloitte India Talent Outlook 2025’ says around 75 per cent of the companies are expected to either cut or maintain their previous year’s salary hikes.

Top performers are set to receive increments 1.7 times higher than average performers, according to Deloitte.

Salary Hike in India In 2025: Indian companies are expected to dole out an average hike of 8.8 per cent in 2025, which marginally lower than the 9 per cent last year, amid global and domestic challenges.

It added that the average salary this year is expected to be the lowest in a decade, excluding 2020-21.

There is a “clear focus” on optimising compensation cost budgets in 2025, which might result in lower pay hikes this year, according to a survey conducted by Deloitte.

The survey report, titled ‘Deloitte India Talent Outlook 2025’, said around 75 per cent of the companies are expected to either cut or maintain their previous year’s salary hikes.

Top Performers To Get Higher Salary Hikes

However, top performers are set to receive increments 1.7 times higher than average performers, while individual contributors and junior management can expect 1.3 times higher increments compared to top management.

The percentage of employees getting promotions is expected to remain steady at around 12 per cent.

Prakhar Tripathi, partner at Deloitte India, said, “In an environment where companies are witnessing muted revenue growth, compensation budgets are naturally coming under pressure. Controlled attrition and moderate inflation are helping companies optimise pay increases without adversely affecting talent outcomes.”

India Inc’s Hiring Plans

Apart from salary hikes, Deloitte said about 80 per cent of the companies are planning to increase their headcount in the coming financial year 2025-26.

Most companies expect to not increase their promotion-linked pay increases compared with previous years, as per the survey.

Attrition in 2024 has moderated to 17.4 per cent, Deloitte said.

Meanwhile, another consulting firm EY in its report EY Future of Pay report recently said Indian companies are expected witness an average salary hike of 9.4 per cent in 2025, compared with 9.6 per cent last year.

News business India Inc To Dole Out Average Salary Hike of 8.8% This Year Against 9% In 2024: Deloitte



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