Indian Bankers Likely To Get Higher Salary Hikes Than Singapore, Hong Kong In 2024

Finance professionals in India are expected to receive greater salary increases compared to their counterparts in Hong Kong and Singapore this year, reflecting the growing emphasis on India's economic growth amid China's deceleration, as reported by Bloomberg Intelligence.

Analyst Predicts 10% Increase in 2024, Outpacing Hong Kong and Singapore

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According to analyst Sarah Jane Mahmud, salaries in India are projected to increase by 10% in 2024, based on survey data from consulting firm Aon. This stands in contrast to the 4% expected salary increase in the two financial hubs of Hong Kong and Singapore.

In India's major urban centers like Mumbai and GIFT city, the nation's free market zone, investment bankers can already earn more than their counterparts in Singapore and Hong Kong.

Rising Salaries and Talent Demand in India's Finance Sector

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As per Bloomberg Intelligence's analysis of a survey by recruiter Michael Page, the average base salary in India is 4.5% higher than in Hong Kong and 7.7% more than in Singapore.

However, private bankers in non-executive roles in India receive salaries that are 50% to 78% lower than those in similar positions elsewhere. Nonetheless, as India's wealth management sector grows, this gap is anticipated to diminish.

¡°Salaries will continue to rise given the large demand-supply gap at senior levels, as will talent for compliance, risk assessment and technology,¡± in India, said Amit Agarwal, managing partner at search firm Stanton Chase.

Banks are offering higher compensation for executives leading business divisions, with salaries exceeding $1 million being prevalent among senior leaders, according to his remarks.

Despite India's higher income tax rates and relatively weaker infrastructure compared to Singapore and Hong Kong, the lower cost of living in India serves as a significant advantage, as highlighted in the report. Government statistics reveal that the average monthly rent in upscale Bandra, Mumbai is $1.76 per square foot, notably lower than the rates of $5.29 in Hong Kong and $5.09 in Singapore.

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