IT Workers to See Modest Salary Hikes in FY2025
IT Workers to See Modest Salary Hikes in FY2025
Experts predict a 5-8% salary increase for employees at major IT firms, with top performers potentially earning up to 18%, amid concerns over global economic uncertainties.
IT workers in India are set to experience smaller-than-usual salary increases in the financial year 2025, as leading companies are expected to offer hikes in the range of 5.5 to 8.5 percent. Industry experts attribute this tempered increase to the ongoing global economic slowdown, which has caused clients to cut back on IT spending.
Although the average salary rise is likely to stay in single digits, top performers may receive more substantial hikes, ranging from 12 to 18 percent. For instance, Wipro has announced salary increases starting in September 2024, with exceptional employees set to receive around 8 percent. Tata Consultancy Services (TCS) also rolled out pay hikes earlier this year, with top-tier employees receiving double-digit raises, while others saw increases between 4.5 and 7 percent.
The Indian IT sector, valued at $254 billion, saw a growth rate of just 3.8 percent in the past year—its slowest in recent history. This has led IT companies to take a cautious approach to salary revisions. While firms like Wipro and TCS have confirmed their plans, others, such as Infosys and HCL Tech, have yet to finalize their decisions, waiting for more stability in the global economic landscape.
Industry analysts also highlight that wage expenses outpaced revenue growth in the past year, which has prompted companies to carefully manage their payroll budgets. This conservative stance is a response to the broader economic pressures facing the global technology sector, with firms navigating a challenging period ahead.
