Salary Increase
and Turnover
Survey
2024-25, India
Key Highlights
Confidential & Proprietary
Salary Increase and Turnover Survey
2024-25 India
The largest, longest running, most comprehensive study on
performance, talent and rewards trends
30 th
Edition
1,400+
Organizations covered
45
Sectors covered
2
Contents
Key Areas Covered
01 02
Macro Salary
Economic Trends In
Outlook India
03 04
Attrition Key Findings
Trends in and Aon’s
India Perspective
Confidential & Proprietary
3
Aon Annual Salary Increase and Turnover Survey 2024-25 India
Aerospace Application Automotive Banking BFSI GCC Chemicals Cloud Consumer Consumer Consumer Clinical Enterprise
and Defense Services Platform Tech Goods- Goods - Non- Research Product
Durable Durable Organization
Energy Energy Energy Engineering Engineering/ ER&D GCC E-Commerce Entertainment Financial Fintech Funds / Asset
(Oil/Gas) (Power) (Renewable) Design Manufacturing & Media Institutions Management
Services
General Global Healthcare Hospitality/ Information & Investment Life Insurance Medical Non-Banking Pharmaceutical Professional
Insurance & Capability GCC Restaurants Communication Banking Technology Financial Services
Reinsurance Centers Technology Companies
(NBFC)
Professional Real Estate/ Retail Retail and Semi Technology Technology Tele- Third Party Transportation Wealth
Services GCC Infrastructure Supply Chain Conductors Consulting & Platform & Communications Services Services Management
GCC Services Products Services
Confidential & Proprietary
4
Macro-Economic Outlook
Amidst the rising global uncertainty, India is poised for a stable growth story
Global Perspective India Perspective
Stabilizing Global GDP Growth Stabilizing India GDP Growth
Moderating Inflation - Global Moderating Inflation - India
Rising Trade Uncertainty and Geo- Urban demand slowdown amidst healthy
Political risk rural demand
Confidential & Proprietary
5
Business Growth and Hiring Sentiments
With 1 out of 2 companies anticipating a top-line growth of >10%, hiring sentiment is also positive, with 2 out
of 5 planning to increase the workforce by >10%
Hiring Sentiment
Projected Growth (Revenue growth) in FY 2025
57%
50% 37%
23% Headcount 5%
14% Reduction
10% (10% or More)
Negative
Growth Increase in Increase in
Maintain Headcount
Headcount Headcount
No Impact 0 - 5% 5% - 10% 10%+ (-10% to 10%)
1% (10% to 30%) (More than 30%)
3%
Confidential & Proprietary
Numbers reported are including 0s and in %
6
Global Outlook | GDP, Inflation and Salary Increase
United Kingdom
1.6 2.1 4.3
Japan
1.1 2.0 3.6
0.9 2.6 4.3
-0.2 2.2 3.4
India
6.5 4.1 9.2 China
6.5 4.4 9.3 4.6 1.7 5.3
4.8 0.4 5.1
U.S.A
2.7 1.9 4.5
2.8 3.0 4.5
Malaysia
4.7 2.5 5.0
5.0 2.8 4.8 Indonesia
5.1 2.5 6.1
Singapore 5.0 2.5 5.6
Brazil 2.5 2.2 4.3
2.2 3.6 5.0 2.6 2.6 4.2
3.7 4.3 5.0
GDP 2025 (P) Inflation 2025 (P) Salary Increase 2025 (P)
GDP 2024 Inflation 2024 Salary Increase 2024 (A)
Confidential & Proprietary
Source: IMF Data Mapper January 2025 Refresh; IMF Data October 2024
Aon Salary Increase and Turnover Survey 2024-25 Second Edition Refresh 7
Salary Increase (India) Trendline Graph
Real Wage Growth Projected to be highest in last 6 years now
High to Low Double Digit High Single Digit
12.6
11.7
10.7 10.4 10.4 10.6
10.2 10.2 9.7
9.3 9.5 9.3 9.7 9.3 9.2
8 8.3
7.4 9.3 7
6.4 6.8 6.5 6.5
8.5 6.5 6.1 8.2
5.5 5.5 5.7
5.2
4.6 4.5
5.7 6.1 3.8 3.9 5.1
4.3 4.9
2.3 4.5 3.9
0.7 0.8
-0.1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 (A) 2025 (P)
-5.8
*Salary Increase Real Wage Growth (Salary Increase - Inflation) GDP
*This represents the Total salary increase including merit, promotion, inflation, and salary corrections. Confidential & Proprietary
Source: Aon Annual Salary Increase and Turnover Survey 2024-25 India; IMF Data Mapper January 2025 Refresh
8
Numbers reported are including 0s and in %
Sector-wise Increment Numbers Manufacturing 9.6 9.5 Services 9.2 9.2
Represented as 2024 (Actuals) | 2025 (Projected)
2024 (Actuals) 2025 (Projected)
Engineering Design Services NBFC Automotive/Vehicle Manufacturing
10.1 | 10.2 10.1 | 10.0 10.7 | 10.2
Global Capability Centres Engineering/Manufacturing Retail (incl. Wholesale and Distribution)
9.4 | 9.7 9.7 | 9.7 9.6 | 9.8
Technology Platform and Products Funds /Asset Management Real Estate/Infrastructure
9.5 | 9.4 10.0 | 9.7 10.6 | 9.7
E-Commerce Professional Services Life Sciences
9.1 | 9.3 8.9 | 9.5 9.5 | 9.5
Chemicals Hospitality/Restaurants Energy (Oil/Gas/Power)
8.6 | 9.2 9.0 | 9.3 10.0 | 9.3
Telecommunication Financial Institutions FMCG/FMCD
7.7 | 8.0 9.5 | 9.0 9.3 | 9.1
Technology Consulting and Services Banking Life Insurance
7.6 | 7.7 9.1 | 8.8 8.8 | 8.4
Numbers reported are including 0s and in % Confidential & Proprietary
Source: Aon Annual Salary Increase and Turnover Survey 2024-25 India
The industries represented here are a sample set of the industries covered. 9
Merit and Non-Merit Increases
Non-merit increases have stabilized post the pandemic induced spike
8.1 8.2
7.7 7.8 7.9 7.8
6.9
4.7
2.8
2.4
1.4 1.6 1.4 1.5 1.4 1.4
2018 2019 2020 2021 2022 2023 2024 (A) 2025 (P)
Merit Non Merit
Merit-related based salary increases that saw a decline during pandemic, have since recovered, reaching 7.9% in 2024 and
projected to decline slightly to 7.8% in 2025. Non-merit increases remain relatively low, albeit showing an upward trend, peaking
at 2.8% in 2022. The data suggests sustained focus on merit-based compensation.
Source: Aon Annual Salary Increase and Turnover Survey 2023-24 India
10
Salary Increases by Level of Management
Sizeable variation in both merit and non-merit increases between management levels
2024 Actuals by Level of Management 2025 Projected by Level of Management
10.0
9.3
10.2 Overall 8.4 8.5
9.4 7.9
8.5 8.7 7.1
7.9
7.1 Merit
Non Merit
1.4 1.5 1.5 1.3 1.4 1.5
Top/ Senior Middle Management Junior Management Top/ Senior Middle Management Junior Management
Management Management
Confidential & Proprietary
Source: Aon Annual Salary Increase and Turnover Survey 2024-25 India
11
Performance Differentiation
Salary increase for top performers sees a dip, Salary differential persists at 1.7x
Increment By Performance Rating Performance Distribution Trend
Top Performer Differential
1.6x 1.7x 1.7x 1.7x 1.7x
16.5 8.2 8.0 9.7 11.2 12.4 11.6 10.5
15.7 15.6
15.2
14.1
13.1 13.1 23.5 24.7 23.3
12.6 24.7 26.2 26.3
12.1 27.8
11.8
11.3 11.2
10.2
9.7
9.2 9.0
8.3 8.4
8.0 7.8
6.3 55.0 54.4 55.9
48.5 50.4 51.8 53.7
4.1 4.3
3.4 3.3
2.9
2.3 2.5
1.4 1.1 7.5
0.5 0.8 0.5 0.8 9.1 9.4
1.6 8.3 8.9 7.0 8.7
4.2 8.1 0.5 0.8
3.5 2.8 3.4
Horizon 2 Horizon 1 2020 2021 2022 2023 2024 Horizon 2 Horizon 1 2020 2021 2022 2023 2024
(2012-2016) (2017-2019) (2012-2016) (2017-2019)
Far Exceeding Expectations Exceeded Expectations Met Expectations Often Not Met Expectation Not Met Expectation
Source: Aon Annual Salary Increase and Turnover Survey 2024-25 India
12
Attrition (India) Trendline Graph
Attrition seems to be easing down for India Inc.
21.0 21.4
19.8 19.3
18.9 18.5 18.7
18.1 17.7
16.3 16.4 16.3 15.8 16.1
12.8
10.3
5.1
4.4 3.9 3.9 4.2 3.9 4.4 4.0 4.3
3.7 3.3 3.4 3.5
2.1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Overall Attrition | Involuntary Attrition
Confidential & Proprietary
Source: Aon Annual Salary Increase and Turnover Survey 2024-25 India 13
Sector-wise Attrition Trends of 2024
Overall Attrition Voluntary Attrition Involuntary Attrition
Technology Platform and Products Financial Institutions Life Sciences
15.3 | 11.0 | 4.3 28.3 | 21.7 | 6.6 15.9 | 13.1 | 2.8
E-Commerce Banking Chemicals
20.2 | 15.6 | 4.6 20.5 | 17.3 | 3.2 10.6 | 9.1 | 1.5
Professional Services Funds /Asset Management Engineering/Manufacturing
16.7 | 13.6 | 3.1 13.6 | 11.9 | 1.7 11.8 | 10.3 | 1.5
Global Capability Centres NBFC Energy (Oil/Gas/Power)
14.6 | 12.8 | 1.8 37.3 | 29.0| 8.3 12.4 | 11.2 | 1.2
Technology Consulting and Services Retail (incl. Wholesale and Distribution) Automotive/Vehicle Manufacturing
18.8 | 14.8 | 4.0 21.3 | 19.2 | 2.1 13.5 | 11.2 | 2.3
Telecommunication Services FMCG/FMCD Hospitality/Restaurants
14.8 | 11.2 | 3.6 15.9 | 12.5 | 3.4 26.3 | 22.6 | 3.7
Engineering Design Services Life Insurance Real Estate/Infrastructure
15.3 | 11.6 | 3.7 45.6 | 34.4 | 11.2 12.8 | 10.9 | 1.9
Numbers reported are including 0s and in % Confidential & Proprietary
Source: Aon Annual Salary Increase and Turnover Survey 2024-25 India; The industries represented here are a sample set of the industries covered.
14
Voluntary & Involuntary Turnover figures are normalized to add up to Overall Turnover
Key Findings
Three in five organisations expected to give equal to 2024 (A): 9.3%
more than 9% increase in 2025 2025 (P): 9.2%
Salary Increase
Engineering, Manufacturing, Automotive, NBFC, Retail and GCCs projecting highest salary
increases while Consumer, Life Insurance, Technology Consulting and Services are on the
other side of the spectrum
Sector Wise Variation
Decline in overall attrition as both employees and Overall Attrition: 17.7%
organisations maintain a wait and watch approach Involuntary: 4.3%
Attrition
Source: Aon Annual Salary Increase and Turnover Survey 2024-25 India
Confidential & Proprietary
15
Aon’s Perspective
India Vs. Global
▪ Volatility and Uncertainty around tightening of the tariff situation
▪ Positive budget boost for India Inc.
▪ Relaxation of monetary policy and inflation stabilizing
▪ AI continues to be a big disruptive force
Impact on Talent Strategies
▪ Create an EVP that strengthens the “Employee connect”
▪ Focus on building Skill based organization
▪ Focus on Productivity
▪ Adoption of AI
Impact on Rewards
▪ Stabilizing salary increments for India Inc.
▪ Challenge is still to maintain competitiveness levels of pay
▪ Maximize Return on Investment on Total Rewards Spend
▪ Performance based differentiation
16
Survey Team
Key Contributors:
Bhuwan Kumar
Komal Tiwari
Jatin Grover
Roopank Chaudhary Amit Kumar Otwani Tarun Sharma
Partner Associate Partner Associate Director Consultant Thallasery Adarsh
Talent Solutions Talent Solutions Talent Solutions Talent Solutions Snigdha Sharma
Sampada Soni
Sanskriti Chauhan
Shantanu Bana
Sayali Rajendra Patil
Abhilasha Hoon
Jini Pillai
Daniel Mark Monteiro Ratnesh Agrahari Shashank Vihari Maddala Sanatvikram Singh Bisht
Consultant Consultant Consultant Associate Consultant
Talent Solutions Talent Solutions Talent Solutions Talent Solutions
Thank You
