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Indian companies to give 6-15% salary hikes this year, can go up to 40% for niche skills: Report
When it comes to salary increments for promotions, it can potentially reach 20-30% and even touch 40% for emerging skills and critical leadership roles.
Indian corporates are likely to grant annual salary hikes of 6-15% on average this year, according to a report by news agency PTI which cited the 2025 Salary Guide by global recruiter Michael Page.
The hike figure will vary depending on the industry and role. When it comes to salary increments for promotions, it can potentially reach 20-30% and even touch 40% for emerging skills and critical leadership roles, according to the report.
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Organizations are also increasingly offering Employee Stock Ownership Plans (ESOPs) and long-term incentives, especially when it comes to senior roles.
Moreover, a growing emphasis on diversity and inclusion is evident, with many companies targeting 50 per cent female representation through competitive compensation packages and flexible work options.
The recruitment consultancy also noted that India's job market has now started offering increased opportunities across multiple sectors, compared to early 2024.
This comes at a time when more than a dozen new global private equity, sovereign, venture capital, real estate, and infrastructure funds have expanded their operations into India, marking its growing significance.
"Some of the exciting roles on salary growth perspective are AI, ML, cyber security, data privacy, then head of manufacturing, chief operating officers, then our senior roles within GCC, which could be the Head of shared services or functional heads in GCC, or it could be roles across financial services, in banking, fintechs and BMCs and private equity venture caps," the report quoted Ankit Agarwala, Managing Director of PageGroup as saying.
The Banking, Financial Services, and Insurance (BFSI) sector also continues to drive demand for professionals across multiple areas, but especially in risk management, finance, compliance, and technology.
“If you want a good salary hike and good progression in your salary, you need to be a specialist with the niche skill,” Agarwala added. “That is what the market is asking for. Market is not looking for generalists who know a little bit of everything.”
Skills in cloud computing, full-stack development, and cybersecurity are also in high demand, with Internet of Things (IoT), 5G, and quantum computing creating new opportunities, according to the report.
