Indian companies are planning to increase employee salaries by 9.8% in 2024, mirroring the 10% hike in 2023, as per WTW’s Salary Budget Planning Report. This positions India as the leader in salary increments across the Asia Pacific region. Factors like tighter labor markets and rising inflation were identified as key drivers influencing employers’ decisions to boost salaries in the coming year.
The survey disclosed that while a quarter of companies exceeded their projections from December 2022, over half of them increased their wage budgets in 2023 compared to the previous year. In terms of salary increments, sectors like technology, media, gaming, financial services, and retail are expected to witness a 10% rise in 2024.
Mr. Rajul Mathur, Consulting Leader of Work and Rewards at WTW India, pointed out that companies in the banking, financial services, and insurance (BFSI) sector, retail, and captives are projecting slightly higher increases for 2024 compared to the actual salary increments in 2023, primarily due to the sustained demand for talent.
The Salary Budget Planning Report, conducted in April and May 2023, collected responses from around 32,512 companies across 150 countries, providing valuable insights into salary trends.
