The recent wave of layoffs has led to an increase in the involuntary attrition rate, rising to 4.3% in 2024 from 4% in 2023. However, the rate of employees choosing to leave on their own has decreased. Voluntary attrition was 17% in 2022, dropping to 14.7% in 2023 and further to 12.6% in 2024, indicating that more employees are trying to retain their jobs due to the uncertain job market and economic conditions.
In the manufacturing sector, the attrition rate decreased from 15.4% in 2023 to 14% in 2024, while in the services sector, it dropped from 19.9% in 2023 to 19.2% in 2024.
The Aon Annual Salary Increase and Turnover Survey 2024-25 for India predicts a 9.5% salary increase in 2025. Eight percent of companies gave less than a 6% hike, while 34% provided a hike between 6% and 9%. Additionally, 57% intend to offer a 9% to 12% increase in salary in 2025, and 7% plan to give over a 12% salary hike.
Top management experienced the highest decline in pay hikes, while for junior managers, it remained relatively consistent. In 2023, the overall pay hike for top/senior-level managers was 9.2%, declining to 8% in 2024. Merit-based hikes for senior managers decreased from 7% in 2023 to 5.9% in 2024, with non-merit hikes reducing from 2.2% to 2.1%.
In 2023, middle managers received an overall pay hike of 9.6%, which decreased to 9.3% in 2024. Merit-based increments for middle managers dropped from 7.2% to 6.9%, while non-merit hikes remained at 2.4%.
Junior managers saw an overall increment of 10.2% in 2023, slightly decreasing to 10.1% in 2024. Merit-based hikes for junior managers declined from 7.6% to 7.3%, while non-merit hikes increased from 2.6% in 2023 to 2.8% in 2024.
Overall, attrition in India has decreased from 18.7% to 16.9%.
