In 2024, After the Covid cases declined to almost nil, companies started working from offices. As the Appraisal is around the corner there are various factors specific to salary hikes for 2024.
Many companies like IBM, TCS, etc have implemented a requirement for employees to work from the office in order to be eligible for promotions and salary increments.
However, multiple other factors also would determine Appraisal trends are:
- Economic Conditions: If the global economy strengthens between 2023 and 2024, it’s possible that salary growth could accelerate as businesses expand and competition for skilled workers increases. Conversely, if economic growth slows down or faces challenges, salary increases may be more modest.
- Inflation: The changes in inflation rates can affect salary trends. The higher inflation might lead to larger salary increases to maintain employees’ purchasing power, while lower inflation could result in more moderate raises.
- Industry Performance: Certain industries have experienced growth or contraction, impacting salary trends accordingly.
- Remote Work Dynamics: Major companies in 2024 have resumed working from the office. This factor may affect the salary hike in 2024.
- Employee Expectations: As the job market evolves, employee expectations regarding salary, benefits, and work-life balance may also evolve. Employers may adjust their compensation strategies to meet these changing expectations.
- Technology and Automation: In 2024 advancements in technology and automation (including Generative AI) may affect salary trends by altering the demand for certain skills and roles. Jobs that can be automated may see slower salary growth, while those requiring specialized expertise may command higher salaries.
Expected Appraisal/ Salary Increase 2024
EY 2024 Report
The EY report suggests that India Inc. is set for an average salary increase of 9.6% in 2024, similar to the actual increase in 2023. The EY report highlights the following findings:
- E-commerce is expected to have the highest salary growth in 2024 at 10.9%.
- It is expected that it will be followed by financial services with a projected growth of 10.1%.
- The professional services’ salary is projected to grow by 10% in 2024.
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.
| 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 |
In 2023, Most IT services-providing companies have announced Nil/less salary increments or deferred salary hikes due to economic uncertainties.
Also, Major tech companies are delaying the salary hike for employees exponentially. The move of salary delay is part of a larger trend of tech companies as investors become increasingly fearful of a recession.
In the previous fiscal year, Infosys, HCLTech, and Wipro also announced a delay in their wage hike cycle.
In fiscal year 2023, Accenture will not hike salaries for Indian and Sri Lankan employees. The company is also postponing promotions across senior management until June 2024.
Deloitte Outlook 2024 Report
According to Deloitte India Talent Outlook 2024, the average India increment is expected to be 9.0 percent in 2024 compared with 9.2 percent in 2023. One in every three organisations is planning to give double-digit increments in 2024.
While lower than last year, increment projections for 2024 are higher than pre-covid levels across all sectors except IT and BPOs/KPOs.
The survey also predicts that companies are likely to offer double-digit increments to junior management employees but with a high focus on performance-based differentiation.
Organisations may be stricter with their bell curves, making it harder to secure top ratings. However, top performers can still expect 1.8x the increments given to average-rated employees.
Also, for employees rated below average, the increment is expected to be lower than last year — 0.6x in 2023 versus 0.4x in 2024.
The percentage of employees expected to be promoted decreased from 12.3 percent in 2023 to 11.5 percent in 2024. Organisations are likely to maintain a 7.5 percent increment for promotions to retain key talent.
Regarding performance bonuses, one of every two companies could pay at-target or above-target bonuses in 2024. The attrition rate fell from 20.2 percent in 2022 to 18.1 percent in 2023 due to the slow hiring momentum.
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