Corporate India is set to experience annual salary hikes ranging from 6% to 15% in 2025, with certain roles in emerging skills and leadership receiving hikes of up to 40%, according to the Michael Page 2025 Salary Guide. The technology, financial services, healthcare, infrastructure, and manufacturing sectors are driving salary growth, reflecting India’s evolving economic landscape and rising demand for specialized skills.

Salary Hikes and Promotions in 2025

According to Michael Page’s Senior Managing Director, Mr. Nilay Khandelwal, standard promotions in 2025 will bring salary increases of 20%-30%, while those in high-demand areas like AI, ML, and cybersecurity may see increases of 30%-40%.

With growing competition for top talent, companies are offering Employee Stock Ownership Plans (ESOPs) and long-term incentive schemes, particularly for senior roles. These incentives aim to retain skilled professionals and provide long-term financial benefits.

Which Sectors Will See the Highest Salary Growth?

1. Financial Services & BFSI

The Banking, Financial Services, and Insurance (BFSI) sector is one of the strongest drivers of salary growth in 2025, as financial institutions expand investment operations and adopt AI-driven solutions.

2. Technology & Cybersecurity

The demand for AI, machine learning (ML), cybersecurity, and data privacy experts is surging, leading to higher salaries and strong hiring trends. Companies are focusing on cyber resilience and data protection, making these roles increasingly valuable.

3. Infrastructure & Manufacturing

With government initiatives boosting infrastructure projects, the manufacturing sector is witnessing increased foreign investment, driving up salaries in engineering, operations, and leadership roles.

4. Healthcare & Life Sciences

As India strengthens its healthcare infrastructure, pharmaceutical and biotech firms are offering competitive salary packages to specialists in R&D, regulatory affairs, and digital healthcare.

Impact of Automation & Gig Economy on Salaries

While automation is expected to reduce demand for traditional roles, it is simultaneously driving salary growth in tech-focused areas like AI, ML, and cloud computing.

The gig economy is also expanding, offering flexible, project-based jobs in industries like consulting, IT, and creative services. More professionals are opting for contract roles, leading to higher payouts for specialized skills.

Private Equity & Global Investments in India

India’s strategic position in global investments is attracting major private equity (PE) and venture capital (VC) firms. More than a dozen global investment funds are expanding their operations in BFSI, real estate, and infrastructure, creating lucrative job opportunities with competitive salary packages.

Conclusion: A Strong Year for Salary Growth in India

With an overall median salary hike of 9% and higher raises in emerging skill roles, 2025 is set to be a strong year for corporate salaries in India. As companies adapt to new technologies and investment trends, professionals in AI, ML, cybersecurity, BFSI, and infrastructure will see the biggest salary boosts, solidifying India’s position as a key global employment hub.

The Upcoming IPOs in this week and coming weeks are Swasth Foodtech, Beezaasan Explotech, HP Telecom India.

The Current active IPO are Royalarc Electrodes, Tejas Cargo India, Quality Power Electrical Equipments, L.K. Mehta, Shanmuga Hospital.

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