Salary hikes to hit 30-40% for emerging skills and leadership roles in 2025: Report

NEW DELHI: Corporate India is likely to witness annual salary hikes in the range of 6-15 per cent this year, depending on the industry, role criticality, and niche skills and this figure may touch as high as 40 per cent for emerging skills and critical leadership roles, according to Michael Page 2025 Salary Guide. The leading global recruitment consultancy noted that India's job market has shown resilience in recent months, offering increased opportunities across sectors compared to early 2024.

"Annual salary hikes in India generally vary from 6-15 per cent, and salary increments for promotions typically range from 20-30 per cent, with critical leadership and emerging skill roles seeing hikes of 30 to 40 per cent," it said. Over a dozen new global private equity, sovereign, venture capital, real estate, and infrastructure funds have expanded their operations into India, marking the country’s growing significance in the global investment landscape, it added.

According to Ankit Agarwala, Managing Director PageGroup, salary projection for this year is 6 to 15 per cent and the median number would be around the 9 per cent mark, similar to last year's figure but the disparity is huge depending on industry and skillset. "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," Agarwala said.

Banking sector in demand

The Banking, Financial Services, and Insurance (BFSI) sector continues to drive demand for professionals across multiple areas, particularly in risk management, finance, compliance, and technology. Agarwala further noted that "... if you want a good salary hike and good progression in your salary, you need to be a specialist with the niche skill. That is what the market is asking for. Market is not looking for generalists who know a little bit of everything. So the salaries are stronger and better if you have a niche skill which is in demand in the market."

Organizations are also increasingly adopting agile hiring strategies and offering Employee Stock Ownership Plans (ESOPs) and long-term incentives, especially for 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.

"Organisations that make decisive moves, provide clear career progression and offer competitive compensation will not only attract top talent but also retain it in an increasingly competitive market," said Nilay Khandelwal, Senior Managing Director at Michael Page Singapore and India. Digital transformation, a thriving startup scene, and the rise of Global Capability Centres (GCCs) have fueled the expansion in the technology sector. The demand for AI, ML, cybersecurity, and data privacy experts is soaring as technology drives India's job market. Skills in cloud computing, full-stack development, and cybersecurity are in high demand, with IoT, 5G, and quantum computing creating new opportunities, the report added.