Corporate profits soar, but employee wages barely budge
India's listed non-government, non-financial companies barely raised staff pay in FY25—just 7.7%, the lowest bump since 2018.
That's a sharp drop from the double-digit hikes seen a couple of years ago.
Some roles are projected to see salary hikes of up to 11.3%, according to TeamLease Services.
It's all about companies tightening their wallets as economic growth stays moderate.
Profits up nearly 19% this year
Here's the twist: while wage growth lagged, company revenues actually grew by 7.2% this year (up from last year), and net profits soared nearly 19%.
This profit jump comes from companies running leaner—spending less on wages and raw materials, and cutting down their debt big time since FY20.
Companies are focusing on efficiency and cost control
This shift shows India Inc. is getting serious about cost control—focusing on efficiency and profits rather than big pay hikes.
For anyone interested in how business shapes jobs and paychecks, it's a sign of how companies are balancing employee costs with staying competitive.