Three in 5 recruiters to offer salary hikes of 6-12% this year: Mint+Shine study
Dry promotion: 'New title, no raise' appraisal trend leaves employees in a pickle According to a study done by audit and consulting firm Deloitte India, the average pay hike across Indian companies is estimated to slip to 9.1% this year from 9.4% last year, with the IT sector facing spending cuts by clients seeing the worst hikes in a decade. Some profiles are expected to get better hikes given their demand. "Over the past few years, many sectors have seen a trend towards more substantial increments for tech and digital roles, while traditional roles may see steadier, moderate increases.
The increments would follow a similar pattern as the previous year," said Ruchira Bhardwaja, chief human resources officer at Kotak Life. According to the Mint+Shine study, just 2% of the recruiters anticipate minimal raises of 0-2%. This comes on the back of economic challenges faced in certain industries and budget constraints limiting their ability to offer better increments.
However, even with stringent budgets, companies are ensuring that the top performers get a prominently higher raise and that can go as much as 1.7-1.8 times the average increment. Read also: Average salary appraisals in Indian IT sector projected between 8.4% to 9% in 2024 Companies like Tata Steel made changes in their appraisal process and organizational bands to offer more opportunities to their top performers. The steel maker introduced Accelerated Career Enhancement Scheme (ACE) in 2023.
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