India’s 2025 Salary Increases to Average 8.8% as Companies Optimize Costs and Reward Top Performers

According to a recent report, companies in India are projected to witness an average salary increment of 8.8% in 2025, a slight decrease from the 9.0% seen in 2024. This adjustment comes as 75% of companies are looking to either sustain or decrease pay hikes in light of subdued revenue growth. However, it is noted that top performers within these organizations could potentially receive increments that are 1.7 times higher than those received by average employees. This strategy is part of a larger effort by companies to streamline costs and emphasize talent differentiation within their workforce. The focus on optimizing costs and rewarding high performers reflects a broader trend in the Indian business landscape, where companies are seeking ways to navigate economic challenges while retaining and incentivizing top talent.

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