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This reflects a downward trend in salary increments since 2022 when companies offered a 10.6% pay increase, driven by the Great Resignation of 2021, says Aon. During the COVID-19 pandemic, a record number of employees voluntarily left their jobs, prompting businesses to boost salaries to retain talent.
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The study, now in its 30th year, analysed data from more than 1,400 companies across 45 industries.
“Despite external uncertainties, India’s economic prospects remain stable, with rural demand improving and private consumption maintaining momentum,” said Roopank Chaudhary, partner and rewards consulting leader for Talent Solutions for India at Aon. “The downward trend in projected salary increases could be in response to external factors like the geopolitical and economic developments, the potential impact of US trade policies, conflict in the Middle East and the explosive pace of generative AI advancements.”
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