- ByStartupStory | February 21, 2024
In 2024, salary growth in India is forecasted to slow compared to the previous year, although the nation is expected to lead major economies in the Asia-Pacific region in terms of salary increases, according to a survey conducted by global professional services firm Aon. The survey, titled Aon’s Annual Salary Increase and Turnover Survey 2023-24 India, collected data from 1,414 companies across nearly 45 industries. It predicts a 9.5% salary increase in India for 2024, slightly lower than the 9.7% rise observed in 2023, attributed to shifts in market dynamics.
“The projected increase in salaries in the Indian formal sector indicates a strategic adjustment in response to the evolving economic landscape,” said Roopank Chaudhary, Partner and Chief Commercial Officer for Talent Solutions at Aon in India.
Specific sectors in India anticipate varying salary increases, with non-bank financial companies, engineering/manufacturing, automotive/vehicle manufacturing, and financial institutions expecting the highest increases, while startups, retail, and technology consulting and services are projected to experience lower growth, according to the survey findings.
“In 2023, organisations navigated a challenging environment, balancing a generous average salary increment amidst high attrition rates,” noted Jang Bahadur Singh, Director for Talent Solutions at Aon in India.
Salary increases in India have seemingly stabilized at high single digits following the post-pandemic surge in 2022, with attrition rates also showing signs of easing after the pent-up demand caused by the pandemic. The overall attrition rates fell to 18.7% in 2023 from 21.4% in 2022, indicating a competitive job market and suggesting that turnover rates may have reached their peak.
