Salaries in India to increase by 9.5% in 2024; infra, manufacturing sectors lead

Salaries in India are expected to increase by 9.5 per cent this year as industries such as infrastructure and manufacturing continue to project robust growth, according to a report by global professional services firm Aon. The report analyzed data across 1,414 companies from almost 45 industries and found that the overall attrition rates fell from 21.4 per cent in 2022 to 18.7 per cent in 2023.

The report showed that global capability centres (GCCs) are expected to see a pay hike of 9.8 per cent in the country, while manufacturing will witness a salary improvement of 10.1 per cent and life sciences, 9.9 per cent. The workforce in financial institutions is expected to receive a salary hike around 9.9 per cent, while tech platforms and services and products will see a pay growth of 9.5 per cent this year.

“The projected increase in salaries in the Indian formal sector indicates a strategic adjustment in response to the evolving economic landscape,” said Roopank Chaudhary, partner and chief commercial officer for talent solutions at Aon in India. 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,” he added. A decrease in attrition is favorable for organizations, allowing them to direct resources towards improving capability and enhancing productivity, thereby creating a positive cycle.

As per the report, “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,” said Jang Bahadur Singh, director for talent solutions at Aon in India.

In conclusion, the report indicated positive growth in the Indian job market, with salary increases across various industries and a decrease in overall attrition rates. This suggests a strategic adjustment in response to the evolving economic landscape and the need for targeted investments in certain sectors.