Indian employees are likely to get an average salary hike of 9.5 per cent in 2024, a tad lower than the 9.7 per cent actual salary hike given by companies in 2023, according to a survey released by Aon.

The global professional services firm noted that India continues to roll out the highest salary increases amongst major economies in the Asia-Pacific region.

Aon’s Annual Salary and Turnover Survey 2023-24 analysed data across 1414 companies across 45 industries. The manufacturing sector is expected to lead the charts with a 10.1 per cent salary hike, followed by financial institutions and Life Sciences sectors with likely 9.9 per cent salary hikes.

Salary Projections

Roopank Chaudhary, Partner and Chief Commercial Officer for Talent Solutions at Aon in India, said, “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.”

E-commerce firms are likely to give average hikes of about 9.2 per cent. FMCG and consumer durable players are likely to hike salaries by 9.6 per cent and the retail sector by 8.4 per cent. Professional services and chemicals sectors’ salary hike is projected to be at 9.7 per cent. The technology platform and products sector is likely to hike salaries by 9.5 per cent while salaries of employees in the tech consulting and services segment could go up by 8.2 per cent.

The survey also reported that overall attrition rates fell from 21.4 per cent in 2022 to 18.7 per cent in 2023 in India, which it said is favourable for organisations.

“In 2023, organisations navigated a challenging environment, balancing a generous average salary increment amidst high attrition rates. As leaders prepare for 2024, their focus is likely to shift towards building a supportive work environment to foster employee engagement in a dynamic job market,” added Jang Bahadur Singh, Director for Talent Solutions at Aon in India.