Staff costs for India’s listed companies—excluding state-owned enterprises and financial firms—rose at the slowest pace in seven years, increasing only 7.7% in FY25, as companies across sectors tightened overheads to protect margins amid a broader economic slowdown.

According to the Reserve Bank of India’s October Bulletin, staff costs for non-government, non-financial (NGNF) companies grew 7.7% in FY25, marking the weakest growth since FY18, excluding the pandemic year.

Employee cost of non-govt, non-financial companies

Year Increase in staff cost % FY17 8.7 FY18 7.5 FY19 10.6 FY20 8.1 FY21 0.3 FY22 16.0 FY23 16.6 FY24 9.2 FY25 7.7

Source: RBI Bulletin

Overhead expenses, which had remained nearly flat at 0.3% in FY21, surged by about

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