India’s 2025 Salary Increments Dip to 8.8% as Companies Prioritize Cost Optimization and Talent Differentiation

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. The decrease is attributed to 75% of companies looking to either maintain or decrease pay hikes as a result of subdued revenue growth. However, top performers can expect increments that are 1.7 times higher than those received by average employees. This trend is indicative of organizations prioritizing cost optimization and talent differentiation in the coming year.

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