Big Salary Boost in 2024? Which Sector Will Witness the Largest Appraisal for Employees?

As the salary appraisal season approaches in 2024, employees across various sectors are eager to learn about the expected increments. A recent survey conducted by HR solutions firm Aon provides valuable insights into the projected salary hikes, with the manufacturing sector poised to offer the most substantial increases.

In 2023, employees witnessed an average salary hike of 9.7%, and while this year’s forecast indicates a slight dip to 9.5%, the survey suggests that three out of four companies are still planning to provide a hike exceeding 9% in 2024. The comprehensive study analyzed data from 1414 companies spanning 40 diverse industries.

Roopank Chaudhary, Partner and Chief Commercial Officer for Talent Solutions at Aon in India, commented on the findings, stating, “The projected increase in salaries in the Indian formal sector indicates a strategic adjustment in response to the evolving economic landscape. Despite a conservative global sentiment, industries such as infrastructure and manufacturing continue to project robust growth.”

Sector-Wise Salary Projections:

• Overall India: 9.5%
• Manufacturing: 10.1%
• Financial Institutions: 9.9%
• Life Sciences: 9.9%
• Global Capability Centers: 9.8%
• Chemicals: 9.7%
• Professional Services: 9.7%
• Fast Moving Consumer Goods/Fast Moving Consumer Durables: 9.6%
• E-commerce: 9.2%
• Retail: 8.4%
• Technology Consulting and Services: 8.2%

The survey further highlighted that the manufacturing sector is expected to lead the way with a substantial 10.1% salary hike in 2024. Financial institutions and life sciences closely follow with anticipated hikes of 9.9%.

Additionally, the study revealed positive news regarding the attrition rate, indicating a moderation and a return to pre-pandemic levels. In 2023, the attrition rate stood at 18.7%, a significant improvement from the over 21% recorded in 2021 and 2022. This data suggests a stabilization in the job market, providing a more secure and stable employment landscape for professionals across various industries.

As companies gear up for the annual appraisal cycle, employees in the manufacturing sector can anticipate the most substantial salary increments, setting the tone for a positive and rewarding year ahead.