Rising salaries projected in multiple job sectors in India
Salaries for the average employee in India is predicted to rise by 9.8% in 2024, close to the actual salary increase of 10% in 2023, with tighter labour markets and rising inflation cited as reasons influencing salary increase budget changes next year.
This is one of the biggest findings from WTW’s Salary Budget Planning Report, which looks to help organisations with compensation planning through a review of salary movement and HR practices. The findings also showed that in contrast to 2022, more than half of the organisations surveyed have increased their salary increase budgets this year, while 25% have increased their budgets due to earlier projections from late 2022.
WTW also found that over more than one-third (36%) of the organisations in India are projecting a positive business revenue outlook for the next 12 months, compared to 42% in 2022. Nearly three in 10 organisations plan to recruit in the next 12 months while about 60% of organisations have increased headcount in 2023 as compared to the previous year.
Jobs deemed heavy in demand to recruit in the next year include roles in industries like IT (61%), Engineering (59.8%), Sales (42.9%), Technical Skills Trade (38.6%), Finance (11.8%), Marketing (10.6%) and Human Resources (3.1%), with Technology, Media and Gaming, Financial Services and Retail sectors expected to see the highest salary increase at 10% in 2024.
Voluntary attrition rates in India dropped from 15.3% in 2022 to 14.65% in 2023, although this remains one of the highest rates in the Asia-Pacific region, said WTW.
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Rajul Mathur, Consulting Leader, Work and Rewards, WTW India said “Companies across industries are still closely monitoring their cost structures… 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.”