Indians can look forward to 6-15% salary hike this year
11 Feb 2025

The Indian job market is set to witness a major salary hike this year, with annual increments expected to fall between 6% and 15% across sectors.

The forecast is part of the Michael Page 2025 Salary Guide, which anticipates promotions could fetch even higher pay hikes between 20% and 30%.

The report notes potential salary hikes up to 40% for critical leadership roles and emerging skills.

Hiring demand driven by key sectors
Economic resilience

The expected salary growth highlights India's economic resilience, with hiring demand largely led by the financial services, manufacturing, and technology sectors.

In order to attract top talent in a competitive labor market, companies are not just promising competitive salaries but also expanding Employee Stock Ownership Plans (ESOPs) and long-term incentives.

These perks are especially aimed at senior executives.

Foreign investments boost job creation
Investment impact

India is seeing a boom in foreign investments, with more than a dozen new private equity, venture capital, and infrastructure funds setting up shop.

This is driving job creation in high-growth sectors like artificial intelligence (AI), cybersecurity, cloud computing, and renewable energy.

The technology sector remains a key employment driver amid digital transformation and a booming start-up ecosystem.

Financial services and manufacturing sectors actively recruiting
Sectoral growth

The financial services sector is aggressively hiring for roles in risk management, compliance, as well as fintech innovation.

Meanwhile, the manufacturing industry is seeing a major uptick in hiring, particularly in electric vehicles, semiconductors, and green energy.

The real estate sector is a bright spot too with both luxury housing and commercial development, driving demand for project and asset management professionals.

Healthcare and life sciences sector expands rapidly
Sector expansion

The healthcare and life sciences sector is growing at a fast pace, fueled by higher investments in pharmaceuticals, biotech, and medical technology.

Legal and supply chain functions are witnessing robust demand as companies look for professionals with expertise in ESG compliance, data privacy, and procurement.

Meanwhile, the temporary staffing market is booming as companies seek more flexible workforce strategies amid economic uncertainty.