Survey: A 9.5% average wage gain is anticipated in 2024

BENGALURU: The most recent wage study conducted in India by HR solutions company Aon indicates that India Inc. would increase salaries by an average of 9.5% by 2024. Compared to 2023, this rise is less than 9.7%. According to Aon, three out of four businesses will raise wages by more than 9% in 2024.
According to the company’s Annual wage Increase and Turnover Survey 2023–24 India, the manufacturing industry would provide the highest wage increase this year—10.1%—among the sectors.

Product companies may increase their dividend by 9.5%, while services companies are anticipated to increase by 8.2% in the tech pack. Startups may offer higher salaries than established IT services companies. According to Aon, they will raise salaries by an average of 8.5% rather than 9% in 2023.
Multinational corporations’ global capability centers are probably going to raise salaries by 9.8%. However, financial institutions are predicted to have the largest increase, at 9.9%.
Organizations had to negotiate a difficult climate in 2023 while maintaining high attrition rates and a substantial average compensation increase. Building a supportive work environment to encourage employee engagement in a dynamic job market is likely to become leaders’ primary emphasis as they get ready for 2024, according to Jang Bahadur, director of personnel solutions at Aon in India.
According to Aon’s research, attrition is beginning to decline and is virtually back to pre-pandemic levels. Compared to nearly 21% in 2021 and 2022, the attrition rate in 2023 was 18.7%.
“Industries like manufacturing and infrastructure continue to project robust growth, indicating the need for targeted investments in certain sectors,” said Roopank Chaudhary, partner and chief commercial officer for talent solutions at Aon in India, “despite a conservative global sentiment.”