The financial services sector will lead the way in salary growth next year, a new report predicts.

The 4th Global Salary Planning Report by UK-based pay and reward consultancy 3R Strategy looked at global salary trends.

It said that financial services are projected to have the highest pay budgets in 2025, set at 5%. That’s compared to the median increase budget across the UK which has been set at 3.5%.

The higher pay is likely being fuelled by fierce competition for talent and the growing need to retain critical technical expertise, according to the firm. 

It said most sectors, including manufacturing, retail, and FMCG, anticipate lower wage increases in 2025 compared to those awarded in 2024.

Financial services pay has been boosted as firms chase skilled professionals, particularly in areas such as risk management, compliance, and technology.

According to the report, there’s a growing awareness of the need for greater pay transparency, as shown by a reported 66% of organisations displaying pay ranges on job adverts in at least some countries.

However, 29% of respondents still don’t include salary ranges when advertising open positions, potentially missing out on attracting a wider pool of highly talented candidates.

Furthermore, the results reveal that more than half (51%) of organisations still ask for candidates’ current salaries, a practice that can perpetuate pay disparities and hinder diversity efforts. 

Rameez Kaleem, founder and managing director of 3R Strategy, said: “The fact that financial services are set to lead the way in wage growth projected for next year comes as no surprise. There are several factors at play, including intense competition for talent, retention of key technical skills, and overall economic recovery.

“It will be interesting to see if the recent Autumn Budget affects these plans and how the sector responds.”