A Positive Economic Forecast India’s corporate sector is set for a salary boost, with projections reaching 9.5% in 2025—matching last year’s growth. This optimism is leading the region, outpacing countries like Vietnam and Indonesia. A bright future for employees is on the horizon!

A recent report has projected a notable salary increase for employees in India’s corporate sector, estimating a rise of up to 9.5% by 2025. This forecast aligns with the actual salary growth recorded in 2024, signaling a stable economic outlook for workers in the region.

Comparative Salary Trends Across Asia

According to WTW’s latest salary budget planning report, this anticipated growth in India is the highest among several emerging markets in Asia. In comparison, Vietnam is expected to see a 7.6% increase, Indonesia 6.5%, the Philippines 5.6%, China 5%, and Thailand 5%. These figures reflect a broader trend of wage growth across the region, highlighting India’s robust position.

Insights from WTW’s Global Survey

The salary budget plan report is compiled by WTW’s Rewards Data Intelligence Practice, based on a comprehensive survey conducted from April to June 2024. The survey collected approximately 32,000 responses from companies across 168 countries, with 709 participants from India. This extensive data collection offers valuable insights into global salary trends.

Corporate Optimism Amidst Stability

Rajul Mathur, Consulting Leader for Work and Rewards at WTW India, noted that companies in India are exhibiting optimism regarding growth prospects. This optimism, however, is approached with caution, reflecting a balance between ambition and prudence. The wave of resignations seen in recent years appears to be fading, as both employers and employees now seek stability in the job market.

Sector-Specific Salary Growth Projections

In 2025, specific industries are expected to experience salary increases that exceed the general average. The pharmaceuticals sector is projected to lead with a 10% rise, followed closely by manufacturing at 9.9%, insurance at 9.7%, and both the captives and Shared Services Organization (SSO) sector at 9.7%. Retail is also set for a healthy increase of 9.6%. Meanwhile, the software and business services sector may see a more modest increase of around 9%, slightly below the national average.

A Bright Future for Employees

As India’s economy continues to show resilience, the projected salary growth provides a promising outlook for employees across various sectors. This increase not only reflects the recovery from past challenges but also indicates a commitment from corporations to invest in their workforce, ultimately fostering a more stable and prosperous work environment.