New Delhi, May 7 -- Consultants who advise companies on pay structures expect this year's salary hikes to be less than what they estimated as recently as March, multiple people aware of the matter said.

While Deloitte had estimated an average pay hike of 8.8%, Aon had predicted 9.2%. However, actual pay hikes may be even lower in some sectors, executives at these firms said on the condition of anonymity. Revisions are likely particularly in businesses feeling the strain of geopolitical crises, tariff disputes, and cautious client decision-making.

In a client note in March, Deloitte had said that the actual pay hikes in FY25 were 9%, against 9.2% it estimated earlier. The consultant said that even though the change was minor, it showed t...