India Inc could see a 9.6% salary increase on average in 2024, similar to the actual increase last year, as per a report by EY ‘Future of Pay 2024’. In 2023, overall attrition fell to 18.3% (from 21.2% in 2022). This is set to gradually decline over the next few years, the report claimed as companies will focus more on cost management and employee well-being.
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Abhishek Sen, partner, EY India, said in a statement, “While overall average salary increase in India Inc. holds steady compared to last year, certain sectors such as ecommerce, financial services and professional services firms are poised for significant pay raises in 2024. There is also a discernible trend towards embracing a more comprehensive rewards value proposition (RVP) to drive better ROI (return on investment) across all industries. Going forward, organisations will harness the transformative power of AI to craft bespoke benefits packages, optimise reward procedures and elevate overall employee satisfaction at the workplace."
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E-commerce is expected to have the highest salary growth of 10.9% this year, followed by financial services (10.1%), as per the report while professional services salaries are set to increase 10% in 2024. The real estate increments will continue to be stable at 10%, it added.
{{/usCountry}}E-commerce is expected to have the highest salary growth of 10.9% this year, followed by financial services (10.1%), as per the report while professional services salaries are set to increase 10% in 2024. The real estate increments will continue to be stable at 10%, it added.
{{/usCountry}}On attrition across sectors, the report noted that the rates have been fluctuating influenced by macroeconomic factors and internal corporate strategies. This overall attrition dropped to 18.3% in 2023 and the highest levels of attrition were in financial services (24.8%), professional services (24.2%) and information technology (23.3%).
The report said 80% of the organisations emphasised the importance of “pay and benefits” and a need to move away from traditional employee benefits. For employers, top three areas of focus were cost planning (43%), employee wellness (29%) and evaluating and aligning with industry standards (20%).