India Corporate Salary Hike Predicted to Average Around 9% in 2024, According to Deloitte India

Deloitte India's latest report, the ‘Talent Outlook 2024,’ suggests a bright scenario for corporate employees in India, forecasting an average India corporate salary hike of 9% in 2024. This uptick in wages is anticipated to surpass the pre-pandemic growth rates across most sectors, with the exception of the IT and BPO industries.

Further, according to EY's recent analysis, ‘Future of Pay 2024,’ Indian companies might roll out an average salary boost of 9.6% in the coming year, mirroring the hike percentages of 2023. The e-commerce sector is expected to lead the pack with a robust 10.9% salary increment, closely followed by the financial services sector at 10.1%. This reflects a competitive landscape for Deloitte India corporate salary hike in 2024.

However, Deloitte India's current forecast for the corporate salary hike in 2024 is slightly more conservative compared to its 2023 prediction of a 9.2% salary increase. This outlook is part of a broader corporate salary trends analysis that suggests a strategic approach to salary increments, where companies are expected to award double-digit raises to junior management. Despite this optimistic view on junior management compensation, the employment compensation analysis indicates a tighter grip on performance assessments, potentially making it challenging for many employees to achieve the highest ratings.

High achievers can look forward to receiving increments approximately 1.8 times higher than those given to employees with average ratings. Conversely, the increment for below-average performers is expected to drop from last year's rate, as per the salary increment forecast.

Deloitte also anticipates a generous bonus payout in 2024, aligning with the positive compensation trends in India, with half of the companies expected to award at-target or above bonuses. Additionally, promotional increments are projected to maintain a 7.5% rate to ensure the retention of vital talent, further highlighting the evolving compensation trends in India.

The report notes a decrease in the attrition rate from 20.2% in 2022 to 18.1% in 2023, attributed to a slowdown in hiring activities, as highlighted in the Deloitte India salary survey. Anandorup Ghose, a partner at Deloitte India, emphasises the importance of performance management strategies in this climate of controlled attrition and inflation rates. He remarks on India's continued position as the fastest-growing major economy globally, likely to see the highest salary increments in comparison to other countries.