Bengaluru: HR solutions firm Aon’s latest survey on salaries in India says that the average salary hike in 2024 by India Inc would be 9.5%. This is lower than the 9.7% increase in 2023. Aon says that three out of four companies will give a hike of over 9% in 2024.
The firm’s Annual Salary Increase and Turnover Survey 2023-24 India says that the manufacturing sector would be the most generous with a 10.1% salary hike this year.In the tech pack, product firms would pay better than the services companies. Product companies could give out a hike of 9.5%, while services firms are expected to give 8.2%. Even startups might pay better than legacy IT services firms – Aon estimates they will give on average 8.5%, compared to 9% in 2023.
Global capability centres (GCCs) of multinational firms are likely to give a 9.8% hike. The highest increment is estimated in financial institutions, at 9.9%. “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,” Jang Bahadur, director for Talent Solutions at Aon in India, said.
Aon’s study shows attrition is moderating and has almost reached pre-pandemic levels. The attrition in 2023 was 18.7%, compared to over 21% in 2021 and 2022.
“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,” Roopank Chaudhary, partner and chief commercial officer for Talent Solutions at Aon in India, said.
Compared to other Asia Pacific countries and Australia, the salary hikes in India are expected to be much higher. Bangladesh is at number two, with the hike expected at 7.3%.
The increment in China was 5.5% in 2023 and is expected to be 5.7% in 2024. Japanese companies are expected to give out 3.6%, versus 3.3% in 2023. Aon analysed data from 1,414 firms across 45 industries.
The firm’s Annual Salary Increase and Turnover Survey 2023-24 India says that the manufacturing sector would be the most generous with a 10.1% salary hike this year.In the tech pack, product firms would pay better than the services companies. Product companies could give out a hike of 9.5%, while services firms are expected to give 8.2%. Even startups might pay better than legacy IT services firms – Aon estimates they will give on average 8.5%, compared to 9% in 2023.
Global capability centres (GCCs) of multinational firms are likely to give a 9.8% hike. The highest increment is estimated in financial institutions, at 9.9%. “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,” Jang Bahadur, director for Talent Solutions at Aon in India, said.
Aon’s study shows attrition is moderating and has almost reached pre-pandemic levels. The attrition in 2023 was 18.7%, compared to over 21% in 2021 and 2022.
“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,” Roopank Chaudhary, partner and chief commercial officer for Talent Solutions at Aon in India, said.
Compared to other Asia Pacific countries and Australia, the salary hikes in India are expected to be much higher. Bangladesh is at number two, with the hike expected at 7.3%.
The increment in China was 5.5% in 2023 and is expected to be 5.7% in 2024. Japanese companies are expected to give out 3.6%, versus 3.3% in 2023. Aon analysed data from 1,414 firms across 45 industries.