Salary increases in the IT sector will be moderated in fiscal year 2015-Telangana today

Industry experts predict an average salary increase of 4-8.5 percent, a notable step of previous years, indicating a change towards more pragmatic compensation strategies

New Delhi: Salary increases in USD 250 billion of India IT services sector It is projected to be moderate in fiscal year 2025, as companies navigate a complex panorama of global economic uncertainties, the evolution of skills demands and the growing adoption of artificial intelligence (AI), according to experts.

Industry experts predict an average salary increase of 4-8.5 percent, a notable step of previous years, indicating a change towards more pragmatic compensation strategies.

“The perspective for salary walks This year is quite cautious, ”said Krishna Vij, vice president of Teamlease Digital. “Industry actors are analyzing increases in the range of 4 percent to 8.5 percent, which is lower than we have seen in previous years. This slowdown is largely due to global economic challenges, reduced discretionary spending and to change commercial priorities. “

Companies are more conservative with their salary budgets, and many have even pushed their evaluation cycles beyond the usual period of April-June, he said, which has made salary reviews less predictable in the current scenario.

“Organizations are changing to skills -based wages, taking advantage of level II hiring for profitability. Instead of salary walks, retention bonds, ESOP and project -based incentives are implemented as compensation strategies, ”said Vij.

The Reed & Willow CEO, Janoo Motiani, also gave a similar expected walk range, by checking it between 5-8.5 percent.

“The days of two -digit walks seem behind us, at least for now. The industry is being installed in a more pragmatic rhythm, and the average walks are expected to loom between 5 percent and 8.5 percent. This is aligned with the cautious optimism seen throughout the sector. TCS has taken the lead, announcing walks ranging from 4-8 percent as of April 2025, establishing the tone for the rest of the industry. However, Infosys, HCltech, Wipro and Tech Mahindra are waiting for the final ads, probably waiting to measure market movements in the second quarter before blocking their plans, ”he shared.

While this may seem a conservative approach, he said, it reflects the growth of market reality, growth, increased efficiencies led by AI and customer demanding demands influence how companies allocate compensation budgets.

Cooling wear rates have reduced the urgency of aggressive counter -conferences and retention bonds, providing companies with more financial flexibility. The wear throughout the industry averaged 17.7 percent in 2024, below 18.3 percent of the previous year, Motiani observed.

The distribution of salary increases is expected to vary significantly at different levels of employees. According to Adecco India, which anticipates an average salary increase of 6-10 percent, medium and higher level employees with demand skills, particularly those related to AI, and it is likely that strong yield receives higher increases.