India is achieving top position in all areas from economic growth to manufacturing and services sector etc. China and other Asian countries are not even visible nearby. Now, on another matter, next year India will be number one. Yes, according to the latest WTW report, India will be ahead compared to other Asian countries in terms of salary increase next year. Even China is lagging behind in these countries. Let us also tell you how much will be the increase in salaries of employees working in the private sector in India. What is the estimated salary increase in other Asian countries?
This will be the salary in India.
Indian companies can offer their employees a 9.5 percent pay rise in 2025, which is equivalent to this year’s actual pay increase. This estimate was made in a report published on Tuesday. According to WTW’s latest salary budget planning report, the average salary increase in India is estimated to be 9.5 percent in 2025. This is equivalent to the actual salary increase for 2024, which has been 9.5 percent this year. The largest 10 percent wage increase next year is likely to come in the pharmaceutical sector, while wage increases in manufacturing (9.9 percent), insurance (9.7 percent) and retail trade ( 9.6 percent) will also likely be above average. However, wage growth in the software and business services sector is estimated to be just nine percent in 2025, less than the overall industry average of 9.5 percent.
The increase will be greater than that of these countries.
According to the report, Indian corporate world is leading across the region with a 9.5 per cent wage increase. Vietnam (7.6 percent), Indonesia (6.5 percent), Philippines (5.6 percent), China (five percent) and Thailand (five percent) are expected to lag behind India. This report is based on data collected by WTW’s Rewards Data Intelligence. This survey was conducted in April and June 2024. This report has been prepared based on approximately 32,000 entries received from companies in 168 countries around the world. This survey also included 709 participants from India.
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Employers and employees want stability
Rajul Mathur, head of advisory (work and remuneration) at WTW India, said companies in India are optimistic about growth but are also cautious. The era of mass resignations is behind us. Now both employers and employees want stability and market sentiment is remarkably stable. Mathur said organizations are putting more emphasis on performance-based pay discrimination. Based on this trend, top-performing employees are expected to get three times the pay increase compared to average-performing employees, while better-than-average performers are expected to get about 1.2 times the pay increase compared to average performers. comparison with employees with average performance.
28 percent of companies are planning to hire.
The report says that about 28 percent of companies plan to make new hires in the next 12 months. However, the dropout rate remains high in this sector. The attrition rate in India rose to 10.8 percent in 2024, up from 11 percent in 2023. Apart from this, around 46 percent of companies in India expect their salary hike budget for 2025 to be the same as for 2024, while 28 percent of companies expect the budget to be lower than estimated.
