Indian firms expected to offer 9.8% salary increment in 2024
In 2024, Indian firms are predicted to increase employee wages by 9.8%, nearly matching the 10% hike in 2023, as stated in the recent Salary Budget Planning Report by the global advisory company WTW. This places India at the top of the list for salary raises in the Asia Pacific region. The report points to tightening labor markets and escalating inflation as key factors impacting salary increase budgets for the upcoming year.
Sector-wise salary increase projections
Technology, media and gaming, financial services, and retail industries are anticipated to experience the largest salary growth at 10% in 2024. These sectors have forecasted slightly higher increases for 2024 compared to the actual salary growth in 2023, due to the ongoing demand for talent. Rajul Mathur, consulting leader for Work and Rewards at WTW India, mentioned that businesses across various sectors continue to closely monitor their cost structures.
Hiring and attrition trends
According to the WTW report, nearly 28% of companies intend to hire within the next year, while approximately 60% of firms have grown their workforce in 2023 compared to the prior year. The voluntary attrition rate in India has decreased from 15.3% in 2022 to 14.6% in 2023, although it remains among the highest in Asia Pacific markets.
'Hot jobs' for recruitment in the next year
The report highlights 'hot jobs' for recruitment over the next 12 months, featuring positions in Information Technology (61%), Engineering (59.8%), Sales (42.9%), Technical Skills Trade (38.6%), Finance (11.8%), Marketing (10.6%), and Human Resources (3.1%). Mathur observed that industries such as manufacturing, pharmaceuticals, media, gaming, and global captive centers (GCCs) are growing, as demonstrated by their hiring strategies and salary allotments for 2024.
Salary increases in Asia Pacific region
India continues to lead the Asia Pacific region in terms of salary increases. Vietnam's projected salary growth for 2024 is 8%, followed by China at 6%, the Philippines at 5.7%, and Thailand at 5%. The Salary Budget Planning Report was carried out in April and May 2023, gathering approximately 32,512 responses from companies across 150 countries, including 708 participants from India.
