Salary Increment 2025 / Important news for private job holders! Know what will be the average increment in 2025?

Salary Increment 2025: Indian companies are currently focused on effectively managing their compensation cost budgets while facing global and local challenges. In this context, according to the latest report 'Deloitte India Talent Outlook 2025' by Deloitte India, the average salary increment of employees is likely to be 8.8% in 2025.

Slight decline compared to last year In 2024, Indian companies gave an average increment of 9.0% to their employees, while in 2025 this rate is expected to decline slightly to 8.8%. The report also mentions that about 75% of the companies will either cut the salary hike or maintain it at the same level as last year.

Consumer products sector employees disappointed The report also reveals that while most sectors are planning to keep salary increases stable or reduce them marginally, the consumer products sector is likely to see significant cuts in salary increment budgets. This trend is being seen mainly due to slow revenue growth of companies and increasing economic pressures.

Best performing employees will get 1.7 times more increment The Deloitte India Talent Outlook 2025 report is based on inputs received from executives of over 500 companies and shows that companies are willing to give 1.7 times more salary hike than average performing employees to retain their top performers. Apart from this, the report also states that individual contributor and junior management level employees are likely to get 1.3 times more increment than top management.

Optimistic attitude towards recruitment: 80% companies will increase appointments The report also states that the rate of layoffs has come down to 17.4% in 2024 and companies have prioritized employee stability. About 12% of employees are likely to get promotions this year, which remains at the same level as last year. Interestingly, about 80% of companies are planning to expand their workforce in 2025, which reflects a positive attitude towards hiring.

Conclusion 2025 may prove to be an important year for Indian companies, where salary increments may see a slight decline. However, positive trends in hiring and strategies to incentivize top performers will try to maintain the productivity of the workforce. Despite the pressure on the compensation cost budget of companies, most employers are focused on providing competitive salary increases to retain their skilled and talented employees.