New Delhi, Feb 21 (FN Bureau) Indian salaries are expected to increase by 9.5 per cent in 2024, a slight drop compared to actual increase of 9.7 per cent in 2023, according to a global professional services firm Aon. According to the firm’s Annual Salary Increase and Turnover Survey 2023-24 India, “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.”
Aon published the findings of the survey which analysed data across 1414 companies from almost 45 industries. The survey revealed that salaries in India are expected to increase by 9.5 per cent in 2024 with manufacturing taking lead with 10.1 per cent followed by Life Sciences and financial institutions at 9.9 per cent, the survey revealed. The survey revealed that the overall attrition rates fell from 21.4 per cent in 2022 to 18.7 per cent in 2023. This highlights a job market that remains competitive and that 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.
According to Aon, 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. Three in four organisations are expected to give more than 9 per cent increase in 2024, Aon said adding “Financial Institutions, Engineering, Automotive and Life Sciences projecting highest salary increases while Retail and Technology Consulting and Services are on the other side of the spectrum.”