New Delhi, Feb. 7 -- Employees hopeful of a better pay hike than last year may be in for a disappointment. An array of consultants and companies Mint spoke with said that appraisals-and salary increments-are likely to be worse than in 2024, albeit not by much. That, however, is scant consolation given 2024 saw the lowest increments in the past seven to eight years, per industry estimates.

Slowing corporate earnings, which have led to constrained budgets, as well as lethargic economic growth have pushed firms to become even more tightfisted than last time, consultants said.

With the post-pandemic hiring mania easing off, companies' focus has moved away from hiring at any cost to retention of top performers. Some startups are even offerin...