Companies in India likely to give 9.8% salary raise in 2024, highest in APAC: Report

Indian cos to give 9.8% salary raise in '24, lower than 10% in '23. Survey of 32,512 sets from 150 countries, 708 from India. IT sector to see 10% raise, highest in APAC. Voluntary attrition rate down to 14.6%. Financial, retail, captive setups to see higher salary increases due to talent demand.

Companies in India are expected to give a salary raise of 9.8% in 2024, slightly lower than the actual salary increase of 10% in 2023, as companies across industries are still closely monitoring their cost structures, says a survey.

According to Willis Tower Watson's latest 'Salary Budget Planning India Report', the median salary increase in India is forecast to rise by 9.8% in 2024, close to the actual salary increase of 10% in 2023.

The survey was conducted in April and May 2023. Approximately 32,512 sets of responses were received from companies across 150 countries worldwide. The survey had 708 participants from India. In Asia Pacific, 7,372 organisations from 22 markets responded.

Being an emerging market, salary increases in India continue to be the highest across Asia Pacific (APAC). The 2024 salary increase for Vietnam is projected at 8%, followed by China at 6%, Philippines at 5.7% and Thailand at 5%.

"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," said Rajul Mathur, Consulting Leader, Work and Rewards, WTW India.

In contrast, sectors like manufacturing, pharmaceuticals, media, gaming, and global captive centres (GCCs) are expanding and this is evident from their hiring plans and salary allocations for 2024, Mr. Mathur said.

The report further noted that tighter labour markets and rising inflation have been cited as some of the major concerns influencing salary increase budget changes for 2024.