Employees to get 10% average hike in 2024 – These sectors poised for highest raises
Companies in India are projected to provide an average salary increase of 10 per cent this year, with the automobile, manufacturing, and engineering sectors expected to experience the highest raises.
In 2023, the average salary hike was reported at 9.5 per cent, as per Mercer's Total Remuneration Survey (TRS) released on Tuesday.
"This trend showcases India's strong economic performance and its growing appeal as a hub for innovation and talent. Employees in the automobile, manufacturing & engineering and life sciences in India are projected to see the highest salary increment increases, highlighting the competitive nature of these sectors," it said.
The survey, conducted between May and August 2023, collected data from 1,474 companies, encompassing over 6,000 job roles and representing more than 21 lakh employees. It examined salary trends across various industries, with individual performance, organisational performance, and position in the salary range being the top three factors influencing increments.
According to the survey, the median merit salary increments in India are projected to reach 10 per cent in 2024, following a 9.5 per cent increase in 2023. Additionally, the rate of voluntary attrition in India has exhibited a gradual rise from 12.1 per cent in 2021 to 13.5 per cent in 2022.
"The half-yearly data for 2023 indicates a slight increase in attrition compared to 2022, suggesting a continuing upward trend in voluntary attrition each year, which is also being reflected in other parts of the world, including Brazil, China, Australia, and Japan," Mercer said.
Mansee Singhal, Rewards Consulting Leader for Mercer in India, emphasised that the projected salary increments underscore confidence and optimism in the Indian market. This optimism is fuelled by robust economic indicators and a thriving business landscape.
Singhal further noted that the persistent emphasis on AI and automation has propelled key industries such as automobile, manufacturing, engineering, and life sciences into a new phase of growth.
