**CTC vs In-Hand Salary: Understanding Your Salary for Better Financial Health**
Corporate India is facing a reality check, with salary increases in 2025 projected to be lower than last year’s 9.3-10%. The slowdown in corporate earnings and stagnant job demand suggests that raises will be modest, particularly for professionals with niche skills in AI, cybersecurity, and data analytics. Consulting firms anticipate that salary revisions in corporate India will not match the increases offered in the previous year.
**What Raises Can You Expect This Year?**
Consulting firm Aon predicts that corporate employers will provide an average salary hike lower than last year’s 9.3%. Mercer’s Annual Total Remuneration Survey forecasts a 9.4% overall salary increase across various industries in India for 2025, compared to an estimated 10% last year. Even top performers may find little to celebrate, as companies are likely to scrutinize their performance more closely before granting significant raises. Historically, when base salaries were lower, percentage hikes were higher; however, as salaries have increased in many sectors, percentage increases are expected to decline.
**Reasons for Low Hikes**
While the average raise is anticipated to be lower than last year, the decrease is not drastic. Slowing corporate earnings and sluggish economic growth have led firms to tighten their budgets. According to a partner at Deloitte India, many companies are exercising caution as total payroll costs are rising faster than revenue growth. Additionally, unlike in 2022 and 2023, when attrition rates were high, the demand for new hires has plateaued unless candidates possess specialized skills.
**Who Might See a Good Hike?**
Individuals who have enhanced their skills in cutting-edge AI technologies or advanced cybersecurity and data analytics may receive raises that are 1.6-2 times higher than their peers in other roles. In the banking sector, hikes are expected to be slightly lower than last year. The IT, GCC, and startup sectors typically offer higher increments, but with low attrition rates, substantial hikes are unlikely.
**What If Hikes Are Not Significant?**
As the post-pandemic hiring frenzy subsides, companies are shifting their focus from aggressive recruitment to retaining top talent. Some startups are even providing exclusive credit cards to attract and retain high performers. For instance, a Bengaluru-based product innovation startup offers variable pay along with employee stock ownership plans (ESOPs) and stock appreciation rights in innovative ways to enhance employee engagement.
