India Inc to roll out 9-10% hike, focus on retaining talent
general elections while preparing for the increment cycle. “The coming financial year will have large macro factors in India (polls, etc.), and it always has an impact on the business fundamentals such as overall spending," said Anandorup Ghose, a partner at Deloitte India. “Some of that will have a rub-on effect on firms focused on India as their core market." WTW estimates India Inc.
to offer a median hike of 9.8% in 2024, lower than the average increment of 10% in 2023. “However, being an emerging market, salary increases in India continue to be the highest across the Asia-Pacific," according to global advisory, broking and solutions company WTW’s Salary Budget Planning Report. While hikes may be muted, companies will raise compensation scales for niche skills since retaining them remains a challenge.
Consulting firms expect companies to try to bring in sharper differences when paying top performers, which is often 1.7 times the median salary hike. “It’s been a trend for some time that companies are keeping average increases muted while working on the edges to ensure the right skill is rewarded disproportionately," Ghose added. Compared with Indian firms’ estimation of 9.8%, Vietnam is projected at 8%, followed by China (6%), the Philippines at 5.7% and Thailand at 5%.
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