Business
India Expects 9.5% Salary Increase in 2024; Infrastructure and Manufacturing Sectors Lead Growth
India Expects 9.5% Salary Increase in 2024; Infrastructure and Manufacturing Sectors Lead Growth
According to a survey released on Wednesday, salaries in India are predicted to rise by 9.5% this year as sectors like manufacturing and infrastructure continue to see strong growth. According to a survey by global professional services firm Aon, manufacturing will experience a salary improvement of 10.1% and life sciences, 9.9%, while global capability centers (GCCs) are likely to receive a pay hike of 9.8% in the nation.
It is anticipated that employees working in financial institutions will experience compensation increases of approximately 9.9% this year, while pay growth for tech platforms, services, and goods will be 9.5%. The study examined information from 1,414 businesses across nearly 45 categories. It was discovered that the overall attrition rates decreased from 21.4% in 2022 to 18.7% in 2023.
“A strategic adjustment in response to the evolving economic landscape is indicated by the projected increase in salaries in the Indian formal sector,” stated Roopank Chaudhary, chief commercial officer for talent solutions at Aon in India and partner.
“Industries like infrastructure and manufacturing continue to project robust growth, indicating the need for targeted investments in certain sectors,” he continued, despite a generally pessimistic outlook on the world economy.
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Reductions in attrition benefit organizations because they free up resources for capacity building and productivity enhancement, which feeds back positively.
According to Jang Bahadur Singh, director of talent solutions at Aon in India, “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.”
