Amidst the news of increase in salary for government employees, now a ray of hope is visible for private sector employees also. There is a possibility of a big increase in the salary of some employees working in the private sector in 2025. This claim has been made on the basis of a reputable survey.
At present, many private sector companies are facing economic challenges. These challenges have affected the functioning of companies and the salaries of employees. Although, HR consulting firm Mercer A recent survey by ICICI has made it clear that by 2025, the average total salary in the private sector in India will 9.4 percent There may be an increase.
This increase is higher than in 2020, when the average increase was 8%. Technology, automotive, and manufacturing sectors will be the key players in this growth. Come, let us know in detail every information related to salary increase in private sector.
Why did expectations rise despite economic challenges?
The last decade has been full of financial crisis and competition for the private sector. The pressure on companies increased due to the Covid-19 pandemic, but after that, due to technological innovation in many sectors and government initiatives like ‘Make in India’, companies strengthened their position. This is why the survey has claimed the possibility of salary increase and new recruitments in the coming years.
Survey of private sector wage growth: key findings
HR consulting firm Mercer Of Total Remuneration Survey (TRS) According to , there is a possibility of wage increase in many sectors in India by 2025. Some important points from the report are given below:
- Average salary increase: 9.4% (8% in 2020)
- Leading Area: Automotive, Technology, Manufacturing
- Increase in employee strength: 37% companies will make new recruitments
- Attrition Rate: 11.9% (expected to remain stable)
- Highest increase in salary: In areas related to electric vehicles and artificial intelligence
Growth of automotive and technology sector
1. Automotive Sector:
Over the last 5 years, the automotive sector has on an average 10% Has registered a salary increase of Rs. Especially the increasing demand for electric vehicles and the ‘Make in India’ initiative have pushed this sector forward.
2. Technology Sector:
The technology sector is growing rapidly in India. According to the survey, this sector will play an important role in high salary growth as well as new recruitments in the coming years.
Contribution of manufacturing and engineering
Manufacturing and engineering sector are also playing an important role in this increase. According to the survey, the average salary increase in these sectors 9.7% Expected to stay. Campaigns like ‘Make in India’ and ‘Digital India’ have led to stability in India’s manufacturing and engineering sector.
Will the number of employees increase?
The report states that by 2025 37% companies Planning to increase the number of its employees. However, the attrition rate 11.9% But can remain stable.
Attrition rates will be higher in some sectors such as agriculture, chemicals, and shared service organizations.
| Area | Attrition Rate (%) |
|---|---|
| agriculture and chemicals | 13.6% |
| shared services organization | 13% |
Impact of Artificial Intelligence
Artificial Intelligence (AI) It is rapidly making its place in the private sector of India.
- 55% companies Incorporating AI into its operations.
- CEOs of companies believe that AI will play an important role in increasing productivity and growth.
With the increasing use of AI, the possibilities of new recruitments and technological advancement in the private sector are increasing.
Challenge of retaining talent
At present, companies are not only focusing on attracting new talent but are also taking several steps to retain existing employees:
- competitive salary: Companies are offering better salary packages.
- Upskilling: Training programs are being run to teach new skills to the employees.
- Employee Engagement: Companies are adopting new methods to keep employees more motivated and satisfied.
Immense possibilities in career and need for new skills
If you want to make a career in the private sector, it is very important to upgrade yourself with new skills.
- Technology Sector: Do courses related to cyber security, data analytics and AI.
- Automotive sector: Focus on electric vehicle technology and mechanical engineering.
- Manufacturing: Learn new production techniques.
Can you take advantage of a salary increase?
If you work in the private sector, the year 2025 will bring many possibilities for you. But you have to prepare yourself for this:
- Learn new skills.
- Keep an eye on your company’s growth.
- Take strategic decisions for better career growth.
