The festival season in India has kicked off, with people indulging in festive spending. However, as the celebrations wind down, many turn their attention back to their bank accounts, hoping for better appraisals as the financial year comes to a close.

According to a survey by professional services firm Aon, the salary hike for 2025 is expected at 9.5 per cent, a slight increase from the 9.3 per cent this year.

The findings, part of Aon’s 30th Annual Salary Increase and Turnover Survey 2024-25, analysed data from 1,176 companies across over 40 industries from July to August.

Notably, the engineering, manufacturing, and retail sectors are expected to offer double-digit increases of over 10 per cent in 2025, with financial institutions closely following at 9.9 per cent. This reflects the strategic importance of talent retention in these sectors amid the current business landscape.

While the technology sector began the year with a cautious outlook, optimism is growing as 2025 approaches. Global capability centres and technology products anticipate salary hikes of 9.9 per cent and 9.3 per cent, respectively, while technology consulting and services are projected to offer a more modest increment of 8.1 per cent.

The survey also highlights a downward trend in attrition rates, with an average churn of 16.9 per cent this year, down from 18.7 percent in 2023 and 21.4 per cent in 2022. This indicates a stabilising workforce as companies work to retain talent.

“Despite the evolving global economic challenges, our study indicates a positive business outlook across sectors in India. Many domestically driven industries, such as manufacturing, life sciences, and retail, are projected to offer attractive increments. Organisations focused on retaining talent in a competitive job market must stay informed about changing market trends. A holistic rewards strategy based on data and analytics will be essential to attract and retain the right talent, ensuring a resilient workforce,” Roopank Chaudhary, partner and head of reward solutions in India for Aon, said.

Looking ahead, the Phase-II of the study will incorporate data collected in December and January, with results set to be published in early 2025.

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Expect better salary hike in 2025 than you got this year: Survey