Employees in India are expected to see a 9.5 percent hike in salary in 2024, a slight drop from the actual increase of 9.7 percent in 2023, according to Aon India's 30th Annual Salary Increase & Turnover Study 2023-24.
While the manufacturing industry will offer the highest hike of 10.1 percent, financial institutions will come next with a 9.9 percent rise, at par with life sciences. Global capability centres may offer a 9.8 percent raise, while technology consulting and services will stand last at 8.2 percent hike.
The survey reveals that the overall attrition rates fell from 21.4 percent in 2022 to 18.7 percent in 2023. This highlights that the job market remains competitive and turnover rates may have reached their peak.
A decrease in attrition is favourable for organisations allowing them to direct resources towards improving capability and enhancing productivity, thereby creating a positive cycle.
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The study analysed data across 1,414 companies from almost 45 industries. “The projected increase in salaries in the Indian formal sector indicates a strategic adjustment in response to the evolving economic landscape. Despite a conservative global sentiment, industries such as infrastructure and manufacturing continue to project robust growth, indicating the need for targeted investments in certain sectors,” said Roopank Chaudhary, partner and chief commercial officer for Talent Solutions at Aon in India.
A report by staffing firm Adecco revealed that with compensation being the main priority for jobseekers to shift, salary expectations across the Asia-Pacific (APAC) region are high in 2024. Around 21 percent of respondents from India and 9 percent from Malaysia received more than 20 percent salary hikes as part of their current role.
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In contrast, 91 percent and 72 percent of respondents from India and Malaysia expect more than a 20 percent increase in their base salary while changing employers, according to the ‘Adecco India Salary Guide 2024’ report.
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