India's Corporate Outlook: Balancing Caution with Growth

Corporate India's salary hike for 2025 is projected at 9.5%, similar to the 2024 increase. Companies maintain optimism amidst global challenges. While performance-based pay differentiation is emphasized, hiring rates may stabilize with inflation, recession, and cost management as influencing factors.

India's corporate sector is set to witness a 9.5% salary hike in 2025, mirroring the increase from 2024, as per the latest WTW Salary Budget Planning Report.

The report highlights India's leadership in salary increases in the region, with pharmaceuticals, manufacturing, and insurance industries expecting hikes above the median. The robust growth of India's captive sector continues to drive salary boosts.

While companies aim for growth, challenges like cost management and a tighter labor market persist. Employers are shifting focus to performance-based pay, with variable payouts targeting top performers to ensure equitable recognition and reward.

(With inputs from agencies.)