Average increment in India expected to slip to 9% in 2024, says Deloitte survey
salary increment in India in 2024 is likely to be 9%, marginally lower than last year’s 9.2%, shows a recent survey by management consulting firm Deloitte.
The Deloitte India Talent Outlook 2024 Survey also shows that one in every three organisations in the country is planning to give double-digit increments this year.
While the overall average increment is lower than last year’s, increment projection for 2024 is higher than the pre-Covid levels across all sectors, except IT and business process outsourcing (BPO)/knowledge process outsourcing (KPO).
The survey also predicts that companies are likely to offer double-digit increments to junior management employees but with a high focus on performance-based differentiation.
Deloitte’s report says that organisations may be stricter with their bell curves, making it harder to secure top ratings. However, top performers can still expect 1.8x the increments given to employees with “average” ratings.
For employees rated “below average”, the increment is expected to be lower than last year—0.4x in 2024 compared with 0.6x in 2023.
The percentage of employees expected to be promoted in 2024 has come down to 11.5% from 12.3% in 2023, according to the survey, while organisations are likely to maintain a 7.5% increment for promotions to retain key talent.
Regarding performance bonuses, one out of every two companies could pay at-target or above-target bonus in 2024. In 2023, the attrition rate had fallen to
