India Inc to hand out 9.6% average salary hike: EY
The biggest hikes will be received by the e-commerce sector at 10.9 per cent, followed by financial services with a projected growth of 10.1%
Private sector employees in India can expect an average salary of 9.6% in 2024. This hike would be just about similar to what was doled out last year.
“Professional services’ salary is set to grow by 10 per cent in 2024, suggesting a rebound as companies invest in strategy alignment to navigate global business complexities. The impact of real estate and infrastructure as an emerging sector is also visible, as increments continue to be stable at 10 per cent,” consultancy firm EY in a report.
The biggest hikes will be received by the e-commerce sector at 10.9 per cent, followed by financial services with a projected growth of 10.1%.
Eighty firms across sectors with average employee size of 5,000-10,000 participated in the survey. India Inc is set for an average salary increase of 9.6 per cent in 2024, similar to the actual increase in 2023, it added. The report also said that the attrition rate has dropped to 18.3 per cent last year from 21.2 per cent in 2022, and is set to gradually decline over the next few years.
As per the report, the top three areas of focus for employers are benefits cost planning (43 per cent), employee wellness (29 per cent), and evaluating and aligning with industry standards (20 per cent). “At 43 per cent, variable pay plan (non-sales) are the most common type of incentives plans offered in the organization, followed by discretionary incentives (32 per cent) and sales incentive plan (21 per cent),” it said.
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