Salaries in India to increase by 9.5% in 2024; infra, manufacturing sectors lead

New Delhi, Feb 21: Salaries in India are expected to increase by 9.5 per cent this year as industries such as infrastructure and manufacturing continue to project robust growth, a report showed on Wednesday.

While global capability centres (GCCs) are expected to see a pay hike of 9.8 per cent in the country, manufacturing will witness a salary improvement of 10.1 per cent and life sciences, 9.9 per cent, according to the report by global professional services firm Aon.

The workforce in financial institutions is expected to receive a salary hike around 9.9 per cent while tech platforms and services and products will see a pay growth of 9.5 per cent this year.

The report analysed data across 1,414 companies from almost 45 industries.

The overall attrition rates fell from 21.4 per cent in 2022 to 18.7 per cent in 2023, it found.

"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", he added.

A decrease in attrition is favourable for organisations allowing them to direct resources towards improving capability and enhancing productivity, thereby creating a positive cycle.

"As leaders prepare for 2024, their focus is likely to shift towards building a supportive work environment to foster employee engagement in a dynamic job market," said Jang Bahadur Singh, director for talent solutions at Aon in India.