POV: You’ve worked your butt off this past year and now you’re ready to reap the rewards. A salary hike calculation is on the cards and by your estimates, it should be a big jump. But will it?
According to HR solution firm Aon’s Annual Salary Increase and Turnover Survey 2023-2024 for India, this depends on which sector you work in. While some industries will be conducting a more generous salary hike calculation this year, some might resort to the previous adjustments. Even so, the survey found India to be delivering the highest salary increases among major economies in the APAC region.
The survey, which analysed data across 1414 companies and 45 industries, has predicted that since inflation is slated to slow down in 2024, this year’s real wage growth (salary increase minus inflation) will be higher compared to 2023. But what is the average percentage increase that one can expect? Here’s all you need to know.
Salary hike calculation: Here’s how much your pay package is expected to increase by in 2024, according to research
In 2024, the average salary hike in India across all sectors will be 9.5 per cent.
While this is lower than 2023’s salary hike calculation, which was at 9.7 per cent, the Aon report notes that the decline in inflation will lead to a real wage growth (salary increase minus inflation) this year. The firm states 2024’s real wage growth at 4.9 per cent, compared to 2023’s 4.2 per cent.
The report also claims that three of four companies will give a salary hike of over 9 per cent in 2024. However, the manufacturing sector promises to be more generous, with a salary hike of 10.1 per cent this year. Product firms are also expected to roll out a 9.5 per cent salary hike in 2024, while global capability centres of multinational companies will peter towards a 9.8 per cent.
Those working in financial institutions are predicted to receive an average salary hike of 9.9 per cent, and so are those working in life sciences. Here’s a breakdown of the average salary hike percentage that each sector in India can expect in 2024, according to the Aon report.
- Technology Platform and Products — 9.5 per cent
- Global Capability Centers — 9.8 per cent
- Technology Consulting and Services — 8.2 per cent
- Financial Institutions — 9.9 per cent
- Fast Moving Consumer Goods / Fast Moving Consumer Durables — 9.6 per cent
- Manufacturing — 10.1 per cent
- Life Sciences — 9.9 per cent
- Chemicals — 9.7 per cent
- Retail — 8.4 per cent
- Professional Services — 9.7 per cent
- E-commerce — 9.2 per cent
