Exciting news for Indian employees: salaries are set to rise by an average of 9.4% in 2025, as shown in a report from Mercer, a well-known HR consulting firm. This is a bright change after a slower growth period, where salaries only grew by 8% in 2020.
The anticipated pay increase comes from strong economic growth and a high demand for skilled workers. The automotive industry is expected to lead this trend, with projected salary hikes reaching 10%, mainly due to the rise of electric vehicles and India’s ‘Make in India’ initiative. Close behind are the manufacturing and engineering sectors, which may see increases from 8% to 9.7%. This reflects a positive recovery in manufacturing.
However, it’s not just salary increases on the horizon. Many companies are planning to expand their workforces. The survey highlights that about 37% of organizations intend to grow their teams, necessitating a focus on strategic hiring, competitive pay, and employee engagement. This is crucial to attract and keep top talent.
Mansee Singhal, Mercer’s leader for careers in India, pointed out that the job market is changing rapidly. He noted that more than 75% of companies are now using performance-based pay, indicating a shift toward valuing performance in the workplace.
The survey collected insights from over 1,550 companies across various industries, including technology, life sciences, and automotive. This broad participation showcases the extensive impact these trends are likely to have across different sectors.
Check out this related article: India’s Historic Leap: ITC Chief Puri on the Nation’s Path to Development by 2047
Source linkBusiness news,workforce expansion,talent demand India,Salary hikes India,Mercer salary survey,2025 salary increase
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