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Salary hike expectations in India based on Job Experience

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Salary hike expectations in India based on Job Experience

India’s professionals are asking one big question in 2025:
 “Will I get a meaningful raise this year?”

The short answer? Yes — but it depends.

India continues to lead the Asia-Pacific region in salary growth. But the era of automatic double-digit hikes is fading. In today’s job market, your raise depends more on your skills, role, industry — and how well you negotiate.

Here’s what the latest 2025 salary data reveals, and what it means for you.

 India: Still the Leader in Salary Growth Across Asia

Despite global slowdowns, India remains one of the fastest-growing salary markets in Asia.

  • Average hike in 20259.2%–9.5% (WTW, Aon, EY reports)

  • Compared to 2024: Slightly down from 9.6%, but still strong

  • Why it’s cooling: Companies are focusing on performance-based pay and cost efficiency after years of inflationary jumps

Sector-Wise Salary Hikes: Who’s Paying More in 2025?

Sector

Average Hike (%)

Why It’s Growing

E-commerce

10.5%

Digital boom + consumer demand

Financial Services

10.3%

Fintech + digital banking roles

Global Capability Centres (GCCs)

10.2%

Global offshoring growth + tech adoption

IT & ITES

9–9.6%

Growth slowing due to automation & cost controls

Engineering/Manufacturing

9.5–10%

Stable demand, but cautious spending

Pharma/Automotive/Retail

8–10%

Steady sectors, salary growth is modest

Pro Tip: Digital-first roles across industries — especially in AI, data, and security — consistently attract higher-than-average hikes.

Location Still Plays a Big Role

  • Bengaluru: Up to 23% above national average for junior/mid roles

  • Mumbai: Leads in senior and leadership compensation

  • Hyderabad & Pune: Competitive for tech roles, slightly more cost-efficient for employers

What’s Changing: The New Salary Reality

AI Is Reshaping Compensation

Over 60% of Indian employers now use AI tools to benchmark salaries and evaluate performance. Raises are increasingly data-driven, not tenure-driven.

Companies Are Watching Budgets

  • ~28% of firms are reducing salary budgets due to global cost pressures

  • More companies are offering non-monetary perks like flexibility, learning budgets, and wellness benefits

Performance Is the Differentiator

Gone are the days of flat 10% hikes for everyone. Companies now reward top performers and critical skillsets, especially in tech, product, and growth roles.

What This Means as Employees

  • Upskilling = More Money
    AI, cybersecurity, analytics, and growth marketing skills are high ROI.

  • Prepare to Negotiate
    Don’t just accept the number on the table. Back your ask with data from Glassdoor, LinkedIn Salary Insights, and market benchmarks.

  • Consider the Full Package
    Total comp = base salary + ESOPs + bonuses + WFH flexibility + growth path

What This Means as Employers

  • Retaining top talent requires more than just a 10% hike

  • Offer personalized growth paths, mental wellness support, and hybrid flexibility

  • Use platforms that reduce hiring friction, improve retention, and help match candidates who stay

Want a Bigger Raise? Sometimes You Have to Move

While appraisals offer 9–10%job switchers are still seeing hikes of 20–35% — and up to 50% for niche or leadership roles. (See our Job Change Salary Hike Blog for deeper insights.)

Salary growth in India is evolving — and so should your approach.
Don’t wait for your company to hand out more. Understand the trends, know your value, and take charge of your next move.

Because in 2025, career growth is a strategy — not just an outcome.