Financial firms plan cautious 2025 pay raises

Region-wide, planned budget increases averaged 5.2%.

Financial institutions in select Asian markets are amongst the slowest growing sectors for salary budget increases this year with a rate of 3.5%, according to WTW’s 2024 Salary Budget Planning Survey.

On the other hand, business consulting was the fastest-growing sector with 7.1%. This was followed by research (6%), legal support (5.8%), and risk management (3.6%). These rates were gathered from China, India, Japan and Taiwan.

Organisations worldwide are planning salary budget increases for 2025, with adjustments reflecting inflation, cost management concerns, and economic uncertainties. 

Planned increases include 5.2% in Asia-Pacific (APAC), 3.7% in North America, 6.0% in Central and Eastern Europe, and 4.5% in Latin America. These figures are slightly lower than in recent years but align with actual 2024 spending.  

WTW’s 2024 Pay Effectiveness & Design Survey highlighted how organisations are revising base salary structures and compensation programs in response to changing labour markets and socio-economic trends. 

WTW’s Global Benefits Attitudes Survey revealed pay remains the leading driver of attraction (56%) and retention (43%). Job security and flexible work arrangements also play significant roles. 

Voluntary attrition rates differ globally, with the highest in North America (9.2%) and the lowest in Central and Eastern Europe (4.7%).

Meanwhile, APAC’s rate was at 8.0%, the second highest globally.

Organisations are focusing on personalised and flexible benefits, with increased attention to mental health and well-being. 

Data analytics is driving tailored rewards programs, whilst sustainability and social responsibility are influencing total rewards offerings. These changes aim to align financial, physical, and emotional well-being with broader organisational values.