The EY report suggests that India Inc. is set for an average salary increase of 9.6% in 2024, similar to the actual increase in 2023.
Abhishek Sen, Partner and Leader, Total Rewards, HR Technology and Learning, People Advisory Services, EY India said, “As we unveil our second edition of the ‘Future of Pay’ report, we provide industry stakeholders with a compass to navigate the ever-shifting landscape of Total Rewards.”
“While the overall average salary increase in India Inc. holds steady compared to last year, certain sectors such as e-commerce, financial services, and professional services firms are poised for significant pay raises in 2024”, Abhishek Sen added.
Abhishek Sen further said, “There is also a discernible trend towards embracing a more comprehensive Rewards Value Proposition (RVP) to drive better ROI across all industries. Going forward, organizations will harness the transformative power of AI to craft bespoke benefits packages, optimize reward procedures, and elevate overall employee satisfaction at workplace.”
EY ‘Future of Pay 2024’ Reports have the following suggestions:
Salary Growth in 2024
The EY report highlights the following findings:
- E-commerce is expected to have the highest salary growth in 2024 at 10.9%.
- It is expected that it will be followed by financial services with a projected growth of 10.1%.
- The professional services’ salary is projected to grow by 10% in 2024.
Technology Workforce
According to the EY report, digital talent makes up 35%-40% of the technology workforce and is expected to gain even greater importance in the future.
In particular, niche skills like Artificial Intelligence (AI), Machine Learning (ML), and Blockchain are highly in demand, with professionals possessing these skills commanding a premium of 30%-50%.
Attrition across sectors
As per the report, attrition rates in India have been fluctuating, influenced by macroeconomic factors and internal corporate strategies. Overall attrition dropped to 18.3% in 2023, from 21.2% in 2022.
The highest levels of attrition in 2023 prevailed across financial services (24.8%), professional services (24.2%) and information technology (23.3%).
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