At a time when many countries are facing recession and mass layoffs, a report by global professional services company AON has predicted how much salary hike employees in India can expect in 2024.
AON has predicted that India will offer employees an average salary hike of 9.5% in 2024, which is a little less than the 9.7% hike that was given in 2023. Based on data from 1,414 companies across approximately 45 industries, AON predicts that three out of four companies will likely offer a pay increase of more than 9% this year.?
The slight decrease in salary hike in 2024, vs 2023, can be attributed to the negative outlook for business in some industries, including retail, e-commerce, and technology consulting and services.?
"Overall, manufacturing sector-led industries are projecting similar or higher salary hikes while, on the other hand, the services' sectors are projecting lower hikes," said Roopank Chaudhary, partner and Chief Commercial Officer for talent solutions at AON in India, as per ET report. "As a result, the increments are moderating this year, as is attrition."
AON predicts that non-banking financing companies (NBFCs) and engineering firms will offer raises of more than 10%. The sectors that are expected to give salary hike in the 9.5–9.9% range are automotive, financial institutions, fast-moving consumer goods (FMCG), tech platforms & products, professional services, and global capability centers (GCCs).?
Key sectors that see salary hikes slowing down include ecommerce (to 9.2% from 9.6%), retail (8.4% from 9.2%), startups (8.5% from 9%), and tech consulting & services (8.2% to 9.1%). "This is reflective of the waning business sentiment across sectors like IT products and consulting, startups, ecommerce, retail, etc.," Chaudhary mentioned.
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