HBI Staff | Hyderabad 
According to a report, 4th Global Salary Planning Report, published by UK-based compensation consultancy 3R Strategy, offers a detailed analysis of current salary trends and projections for 2025. Covering data from over 40 countries and 20 industries, the report sheds light on salary budgets, pay transparency, performance-based compensation, gender pay gaps, and the challenges of effective salary communication.
According to the report, the average salary increase across industries in 2024 stood at 4%, with the hospitality and leisure sector slightly higher at 4.2%. These raises are set against an inflation rate of 1.7% as of September 2024, suggesting modest real wage growth. Projections for 2025 indicate that median salary budgets in the UK will remain steady at 3.5%, mirroring trends in the hospitality and leisure industry. By comparison, sectors like retail and FMCG are expected to see smaller increases.
Impact of the Autumn Budget on Salary Budgets
The UK’s recent Autumn Budget introduced significant changes, including a 6.7% rise in the National Living Wage from April 2025, far exceeding the average planned salary budget increases of 3.5%. Employers will need to adjust pay scales for entry-level roles to meet this new threshold. Additionally, the planned increase in employer National Insurance Contributions from 13.8% to 15% is expected to further strain salary budgets, prompting many organizations to revisit their compensation strategies.
The Challenge of Pay Transparency
The report highlights the growing emphasis on pay transparency. While 64% of organizations have established clear salary guidelines, only 57% actively communicate these to employees. Alarmingly, 35% of companies do not share salary-related information with their staff at all, undermining efforts to build trust.
Despite 68% of organizations maintaining salary brackets, only 26% disclose these ranges to employees in specific regions. Transparency remains critical, with businesses increasingly recognizing the importance of sharing pay data to improve employee engagement and retention.
Recruitment Practices and Pay Equity
In recruitment, 66% of organizations now display salary ranges in job advertisements, aligning with the EU Pay Transparency Directive. However, 29% still omit pay ranges, which could hinder their ability to attract diverse talent pools.
Additionally, over half of organizations (51%) continue to request candidates’ current salaries during the hiring process, a practice criticized for perpetuating wage inequalities and obstructing diversity initiatives.
Gender Pay Gap Reporting
Gender pay gap reporting remains a key focus globally, with mandatory reporting already in place in nations like the UK. The EU Pay Transparency Directive is pushing for more detailed reporting by job levels in other regions. Yet, only 28% of companies currently analyze and report gender pay disparities at this granular level, leaving significant gaps in efforts to address wage inequality.
A Resource for Future Salary Planning
Rameez Kaleem, founder and managing director of 3R Strategy, commented on the findings:
“Conducting our Global Salary Planning Survey for the fourth year, we were delighted with the level of participation across 40+ countries and 20+ sectors. The decline in UK inflation and easing interest rates are encouraging signs for employees. We hope this report serves as a valuable resource for 2025 salary planning, helping businesses attract and retain top talent.”
The report underscores the need for organizations to not only plan for financial adjustments but also prioritize transparency and equity to stay competitive in an evolving job market. With 2025 projections reflecting a cautious yet optimistic outlook, the hospitality industry and others must strike a balance between compliance, market competitiveness, and employee satisfaction.
