Pharma industry to outdo India Inc in 2025 pay hike: Study
New Delhi: Employees in pharma companies are likely to get an increment of 9.6% in 2025, a tad lower than last year but still exceeding the average pay hike of 8.8% projected for corporate India, according to a Deloitte study.New roles like regen medicine researcher (who investigates ways to repair or replace damaged tissues and organs), pharmacovigilance specialist (who ensures the safety of medications and vaccines), real-world evidence scientist (an expert on data analysis and research methods), digital health programme officer and clinical artificial intelligence analysts are likely to get even higher increments, said experts.
'This year's pay hike has been more progressive compared to the previous cycle' for Mankind Pharma, said Prateek Dubey, global chief HR officer at the maker of Asthakind expectorant and Bandy anti-worm chewable tablet. 'This year, stronger business performance and strategic clarity has enabled us to be more generous and differentiated in our approach,' he told ET.The pharma industry has had a stable outlook in terms of increments and promotions over the last five years, with average hikes ranging between 9.3% and 9.8%, Deloitte India partner Neelesh Gupta said. The average pay hikes in India Inc in general, meanwhile, has been consistently declining since 2022.The projected average 2025 increment is 20 basis points (0.2 percentage point) lower than the average for last year. But when it comes to key talent, employees are attracting retention measures that include 1.5 to 1.8 times increments, retention bonus up to 20% of the fixed pay and fast-track careers, Gupta said.
The Deloitte study attributes the pharma sector's higher pay hikes compared with India Inc to sustained strong growth outlook over the years and also the emergence of biotech as a hyper growth engine within life sciences.The hot and new roles within pharma are commanding a pay premium of 10-20% in the market, according to the study.Mankind Pharma has identified critical talent pools that include roles in R&D, regulatory affairs, digital transformation, manufacturing excellence and product management, said Dubey.The pay hike this year for Kilitch Drugs is at par with last year's levels, said whole-time director Bhavin Mukund Mehta, who is also vice-chairman of the Pharmaceuticals Export Promotion Council of India. Kilitch Drugs is giving an around a 9% hike for 2025.'The pharma sector has been offering better hikes than many other sectors due to a combination of strong business performance, high talent demand and the inherent resilience of the industry,' said Mehta.For top performers, the pay hike this year has ranged between 10% and 20%, he added.
At Alembic Pharmaceuticals, the hikes this year are ranging between 6% and 10, said CHRO Namita Patwari.
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