India Inc likely to give 9.4% average pay hike in 2024: Aon
India Inc. is likely to give an average pay hike of 9.5% in 2024, marginally lower than last year’s actual salary hike of 9.7% amid tepid business sentiment in sectors like technology, consulting and services, e-commerce, and retail.
The salary hike forecast for the Indian market was announced by Aon plc, a global professional services firm, in a virtual press conference on Wednesday. The projections are based on data from 1,414 companies covering nearly 45 industries.
“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.”
The survey revealed that the overall attrition rate in India fell from 21.4% in 2022 to 18.7% in 2023. This reflects a competitive job market with turnover rates likely reaching their peak.
A drop in attrition is favourable for organisations, allowing them to direct resources towards improving capability and enhancing productivity, thereby creating a positive cycle.
“In 2023, organisations navigated a challenging environment, balancing a generous average salary increment amidst high attrition rates,” said Jang Bahadur Singh, director for talent
