According to WTW’s latest Salary Budget Planning Report, the median salary hike in India is forecasted to rise by 9.8% in 2024, close to the actual salary increase of 10% in 2023.
The report looks at a range of job grades across various industry sectors summarizes the findings of WTW’s annual survey on salary movement and reviews HR practices as a means of helping companies with their compensation planning for 2024 and beyond.
Sectoral trends in India
Technology, Media and Gaming, Financial Services, and Retail sectors are expected to see the highest salary increase at 10% in 2024.
Companies in the Financial Services, Retail sectors, and Captive setups have projected marginally higher increases for 2024 as compared to the actual salary increase in 2023 due to the continued talent demand.
Rajul Mathur, Consulting Leader, Work and Rewards, WTW India said “Companies across industries are still closely monitoring their cost structures. Within the IT sector, a noticeable correction is expected with salary increments reducing from approximately 11 to 12% in the past to a projected 10% for 2024.”
“In contrast, sectors like Manufacturing, Pharmaceuticals, Media, Gaming, and Global Captive Centers (GCCs) are expanding and this is evident from their hiring plans and salary allocations for 2024. Despite a slowdown in IT recruitment, mid-sized companies, product and platform firms, and the GCCs of Financial Services companies are expected to continue to hire.” he added.
Salary Hikes in the IT Industry in India
India’s top IT companies including Infosys, Wipro, and HCLTech have delayed the salary hikes of their employees in 2023.
Accenture will not hike salaries for Indian and Sri Lankan employees for fiscal year 2023. The company is also postponing promotions across senior management until June 2024.
In an email sent out by Ajay Vij, Country, Managing Director, Accenture in India said, “Employees will get individual annual performance bonuses where applicable although they will be significantly lower than the previous year due to the company’s performance setback.”
“Given the context of our performance, we will not be providing any stay-at-level (base pay) increases this year except where legally mandated or committed in a few critical skill areas,” he added.
Commenting on the Survey Rajul Mathur, Consulting Leader, Work and Rewards, WTW India said, “Companies across industries are still closely monitoring their cost structures. Within the IT sector, a noticeable correction is expected with salary increments reducing from approximately 11 to 12% in the past to a projected 10% for 2024.“
“In contrast, sectors like Manufacturing, Pharmaceuticals, Media, Gaming, and Global Captive Centers (GCCs) are expanding and this is evident from their hiring plans and salary allocations for 2024.” he added.
“Despite a slowdown in IT recruitment, mid-sized companies, product and platform firms, and the GCCs of Financial Services companies are expected to continue to hire.” he further added
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