Salaries in 2025 expected to rise 9.4% overall

Salaries are expected to rise by an average of 9.4% in 2025. This is slightly lower than the 9.7% increase seen in 2024. The automobile and fast-moving consumer goods (FMCG) sectors are anticipated to see the largest raises, both at 10.5%. In contrast, the IT and IT-enabled services (ITES) sectors will grow the least, with expected increases of only 8.2% and 8%, respectively. The data comes from a survey conducted by Omam Consultants. Their report highlights that while some industries will experience double-digit salary hikes, many sectors will see stagnant or even lower growth than last year, except for the automobile industry. Manufacturing and related sectors are projected to see a 9.5% increase, in line with the overall average. Overall employee turnover rates are declining, dropping to 13.6% in 2025 from 13.75% in 2024 and 17.09% in 2022. The banking and financial services sector saw the biggest decrease, with attrition falling to 18% from 22.3% last year. However, ITES companies are facing an increase in turnover, expected to reach 20.2% due to job market instability. Demand for skills in artificial intelligence is on the rise. Companies are willing to offer salaries that are at least 54% higher for professionals with AI expertise. They are looking for skills in data science, SQL, and data visualization tools. Significant pay raises are projected for IT and research and development professionals. The survey also indicates that companies plan to maintain a 7.5% salary increase for promotions to keep essential talent. Many firms are shifting back to in-office work and are implementing hybrid models. Additionally, AI is becoming a regular part of recruitment, helping firms find the best candidates more efficiently.