Indian workers likely to get average salary hike of 9.6% this year: Report

Employees in India are expected to get an average salary increase of 9.6 per cent in 2024, similar to the actual increase in 2023, a new report said on Wednesday. According to the EY 'Future of Pay 2024' report, overall attrition dropped to 18.3 per cent in 2023 (from 21.2 per cent in 2022) and is set to gradually decline over the next few years as companies prioritise cost management and employee well-being, stabilising the workforce amidst high talent demand. "While overall average salary increase in India Inc. holds steady compared to last year, certain sectors such as e-commerce, financial services and professional services firms are poised for significant pay raises in 2024," said Abhishek Sen, Partner and Leader, Total Rewards, HR Technology and Learning, People Advisory Services, EY India.

E-commerce is expected to have the highest salary growth in 2024, at 10.9 per cent, followed by financial services, with a projected growth of 10.1 per cent. Professional services' salary is set to grow by 10 per cent this year, according to the report. Moreover, the report mentioned that 35 to 40 per cent of the technology workforce is made up of digital talent, a figure that is expected to become more crucial in the future.

Among digital skills, Artificial Intelligence (AI), Machine Learning (ML), and Blockchain skills are highly sought-after, commanding a premium in the range of 30 to 50 per cent. "Going forward, organisations will harness the transformative power of AI to craft bespoke benefits packages, optimise reward procedures, and elevate overall employee satisfaction at the workplace," Sen said. About 80 per cent of the organisations highlighted the importance of “pay and benefits” and a need to move away from traditional employee benefits in the modern workforce. The top three areas of focus for employers are benefits cost planning (43 per cent), employee wellness (29 per cent), and evaluating and aligning with industry standards (20 per cent).