India Inc wage growth hit 17-quarter low as muted demand drove cost restraint, May report shows
Resurfacing a May 2025 finding: salary and wage expense at 457 listed companies rose 4.8% year on year in Q4FY25, trailing sales growth of 6.4%. FMCG employee costs grew 3.8%, signalling continued caution around urban consumption and discretionary demand.
What happened
India Inc. · Listed Indian companies’ wage growth slowed to a 17-quarter low as muted revenue growth pressured margins. FMCG employee costs rose 3.8%, while
Key facts
- 457 listed companies
- Q4FY25 salary and wage expense: ₹2.46 trillion
- Salary and wage growth: 4.8% YoY
- Net sales growth: 6.4% YoY
- Net profit growth: 6.7% YoY
- Salary costs as share of net sales: 12%
- FMCG salary and wage growth: 3.8% YoY
- BFSI salary and wage growth: 3.7% YoY
- IT services salary and wage growth: 6.2% YoY
Why this matters
Cautious hiring across India Inc may improve access to talent and strengthen the case for capability-led acquisitions, though weak consumer demand warrants disciplined valuation assumptions.
Also reported by
- Business Standard (via Wayback) — Same time