Double whammy: Even promotions to take a hit as India Inc. turns tightfisted

Subscribe to enjoy similar stories. Employees may be in for an even bigger disappointment this year as the economy and the market grapple with uncertainty. Companies are not only offering slimmer hikes but will also elevate fewer people.

Consulting firm Deloitte estimates a 25% drop in the number of promotions in 2025 versus last year. “The current financial year has seen slower growth for companies across sectors and promotions have been impacted to manage fixed cost increases," said Anandorup Ghose, partner at consulting firm Deloitte India and who tracks and advises corporates on compensation and rewards. “Slower market conditions also lead to organizations not needing to promote people for bigger riles, etc." A Mint analysis of 3,577 BSE-listed companies showed the revenue growth in Q3FY25 dipping to 4.4% from 7.3% and 9.1% in previous two quarters, respectively.

Net profits surged 12.4%, up from 8.7% in Q2, but on account of lower input costs and disciplined cost management. Employee expenses remain steady. Also read | Infosys resorted to this tried-and-tested hack to stem its top-level exodus: Promotions Slowing corporate top line growth coincides with a bout of uncertainty unleashed by US President Donald Trump’s proposed reciprocal tariffs, which are likely to affect multiple sectors.

That has turned companies even more cautious. “Our promotions will go down by 15%," said the HR head of one of the private lenders. “We rolled out quarterly promotions to 20% of eligible employees throughout the fiscal and had we not done that, the annual hit would have been more." The drop in promotions will be an added setback since salary raises too are estimated to be slimmer.