According to the Annual Salary Increase and Turnover Survey 2023-24 India by Aon plc, a prominent global professional services firm, salaries in India are projected to rise in 2024.
The survey revealed that salaries in India are expected to increase by 9.5 percent in 2024, a slight drop compared to the actual increase of 9.7 percent in 2023, in response to market dynamics.
It is expected that the salary hike in the manufacturing industry to be 10.1% and the least in Technology Consulting and Services at 8.2. Second in line could be life sciences and financial services which are expected to see a 9.9%.
The Global Capability Centers stand third with a 9.8% salary rise expected in 2024.
In today’s rapidly evolving world, industries play a pivotal role in driving economic growth and societal development. Within these industries, the workforce is the backbone that propels organizational success.
However, an ongoing concern revolves around the appropriate remuneration for employees. The Survey Showed the following Findings across various Industries:
| Industry | Projected Salary Increases (2024) |
| Technology Platform and Products | 9.5 |
| Global Capability Centers | 9.8 |
| Technology Consulting and Services | 8.2 |
| Financial Institutions | 9.9 |
| Manufacturing | 10.1 |
| Life Sciences | 9.9 |
| Chemicals | 9.7 |
| Professional Services | 9.7 |
| Ecommerce | 9.2 |
The extensive study examined data from 1414 companies across 40 industries and is considered the largest and most comprehensive rewards survey in the country. The details were published by AoN and can be read by a click here.
Factors Influencing Salary Cuts
However, a previous ET report suggested the salary hikes for India’s information technology professionals have been reduced by 30-40%.
Several factors contribute to these sharp salary reductions within the tech industry.
Firstly, companies are experiencing decreased demand for their products or services due to weakened consumer spending power amid global financial uncertainty. Moreover, reduced funding opportunities and limited venture capital investments further exacerbate the financial strain on businesses.
Additionally, remote work arrangements have become commonplace during these times; however, this shift also impacts compensation structures. Remote work often comes with budgetary considerations such as reduced office space requirements or relocation expenses that were previously allocated towards employee salaries.
Upskilling in emerging technologies or diversifying expertise can open doors for new opportunities within different sectors that may be less impacted by current market conditions.
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