Indian companies to raise staff salaries by 9.8% in 2024; highest in APAC region
The report cited tighter labour markets and rising inflation as some of the major concerns influencing salary increase budget changes in companies for next year.
However, compared to 2022, more than half of companies have increased their salary budgets this year, while a quarter have raised their budgets above the projections they made in December 2022, the survey showed.
Technology, media and gaming, financial services and retail sectors are expected to see the highest salary increase of 10% in 2024.
Companies in the banking, financial services and insurance (BFSI) sector (10% vs 9.8%), retail (10% vs 9.9%) and captives (9.9% vs 9.8%) have projected marginally higher increases for 2024 as compared to the actual salary increase in 2023 due to the continued demand for talent.
“Companies across industries are still closely monitoring their cost structures,” said Rajul Mathur, consulting leader, work and rewards, WTW India.
The Salary Budget Planning Report was conducted in April and May 2023 with around 32,512 sets of responses from companies across 150 countries. The survey had 708 participants from India.
In Asia Pacific, 7,372 organisations from 22 markets responded.
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%.
In terms of hiring, almost 28% of companies surveyed plan to recruit in the next 12 months while about 60% companies have increased headcount in 2023 compared to the previous year.
The ‘hot jobs’ for recruitment in the next 12 months include roles in Information Technology (61%), Engineering (59.8%), Sales (42.9%), Technical Skills Trade (38.6%),
