Salaries in India to Increase by 9.5% in 2024

New Delhi: A recent report by global professional services firm Aon reveals promising trends in India’s salary landscape for 2024. Key findings indicate an expected salary increase of 9.5% across various sectors, driven by robust growth projections in industries like infrastructure and manufacturing.

According to the report, specific sectors are poised for notable salary improvements. Manufacturing is anticipated to lead with a 10.1% salary hike, followed closely by life sciences at 9.9%. Additionally, global capability centres in India are forecasted to see a substantial pay increase of 9.8%.

Among other sectors, financial institutions are expected to provide a salary hike of around 9.9%, while tech platforms, services, and products are likely to witness a growth of 9.5%.

The report, which analyzed data from 1,414 companies across 45 industries, also highlights a positive trend in attrition rates. Overall, attrition rates have declined from 21.4% in 2022 to 18.7% in 2023, indicating stability and potential for resource allocation towards enhancing productivity.

Roopank Chaudhary, Partner and Chief Commercial Officer for Talent Solutions at Aon India emphasized the strategic adjustments in response to evolving economic conditions. He noted the continued growth projections in sectors like infrastructure and manufacturing, signalling the importance of targeted investments.

Jang Bahadur Singh, Director for Talent Solutions, highlighted the shift in focus towards building supportive work environments to foster employee engagement amidst a dynamic job market.

The projected salary increase and declining attrition rates offer promising prospects for businesses in India, reinforcing the need for strategic workforce management and investment in employee well-being.