Employees’ salaries to increase by an average of 9.4 per cent this year, the highest 10% increase in the vehicle sector

New Delhi| Indian employees’ salaries are expected to rise by an average of 9.4 per cent this year across various industries. This is a sign of strong economic growth and increasing demand for skilled talent. In the vehicle sector, the highest wage increase could be up to 10 per cent. This claim has been made in a survey by human resource consulting company Mercer.

According to the survey, the salaries of employees have continuously increased in the last five years. On average, wage growth is projected to increase from eight percent in 2020 to 9.4 percent in 2025. The automobile sector will lead the way thanks to the ever-increasing number of electric vehicles and the government’s ‘Make in India’. In 2024, wages in the vehicle industry had increased by 8.8 percent. The average wage growth of employees in the manufacturing and engineering sector is projected to increase from eight per cent to 9.7 per cent.

In 2025, 37 percent of companies are planning to increase the number of employees, the survey said. This reflects the increasing demand for talent in diverse sectors in India. Voluntary attrition (the attrition rate) is projected to remain stable at 11.9 per cent. The attrition rate could reach a high of 13.6 per cent in the agriculture and chemicals sector and 13 per cent in the shared services organization. Mercer’s Mansi Singhal said, India’s talent landscape is changing. Wage increases are reshaping the workforce.