Pay hikes may slip again as firms stare at cloudy days

Consultants who advise companies on pay structures expect this year's salary hikes to be less than what they estimated as recently as March, multiple people aware of the matter said.

- Devina Sengupta

While Deloitte had estimated an average pay hike of 8.8%, Aon had predicted 9.2%. However, actual pay hikes may be even lower in some sectors, executives at these firms said on the condition of anonymity. Revisions are likely particularly in businesses feeling the strain of geopolitical crises, tariff disputes, and cautious client decision-making.

In a client note in March, Deloitte had said that the actual pay hikes in FY25 were 9%, against 9.2% it estimated earlier. The consultant said that even though the change was minor, it showed that companies were more bullish about increases than they were eventually able to afford. "For the coming financial year, the data reflects further caution as the aggregate pay increase projection across sectors is expected to be approximately 8.8%," said the note, seen by Mint.