How much will be your salary hike in year 2024 – Salary Increase and Turnover Survey 2023-24. by AON

A recent survey conducted by AON on salary hikes has left corporate workers in slight dismay. According to the survey, the salary hike for this year is expected to be 9.5% which is slightly lower than the 9.7% increase observed in 2023. Despite this slight decrease, India continues to offer the highest salary hikes among major economies in the Asia-Pacific (APAC) region, as per the AON Annual Salary Increase and Turnover Survey 2023-24.

Aon conducts surveys for salary hikes based on extensive research and data collection from various sources. The surveys are usually conducted through comprehensive questionnaires distributed to participating organizations, which provide detailed information on their salary structures, compensation practices, and projected salary increases. Aon then analyzes this data to identify salary trends, forecast salary hikes, and provide insights into compensation practices across different industries and regions. Now, let’s know a bit about how companies decide the salary hikes…

On what basis the salary hikes are decided by companies

Companies decide the salary hike percentage for a year based on several factors, including individual employee performance evaluations, market trends, changes in the cost of living, budget constraints, retention strategies, and the inflation rate. Performance evaluations help assess an employee’s contribution to the organization while monitoring market trends ensures competitiveness in attracting and retaining talent. Adjustments in salary hikes account for changes in the cost of living and budget constraints, aiming to balance affordability and employee satisfaction.

How much will your salary hike for the year 2024

The survey observed that salary increases in India have stabilized at high single digits following the post-pandemic increments in 2022. With inflation expected to slow down in 2024, real wage growth is anticipated to surpass that of 2023. According to the survey, sectors such as financial institutions, engineering, automotive, and life sciences are expected to receive the highest salary increases. Conversely, the retail, technology consulting, and services sectors are projected to experience comparatively lower salary hikes.

Which sector is expected to get the highest hike

Across sectors, the survey indicates that financial institutions, engineering, automotive, and life sciences are poised to witness the most significant salary hikes. Conversely, the retail, technology consulting, and services sectors are anticipated to experience more modest increases. Notably, the manufacturing sector leads the pack with an expected salary rise of 10.1% in 2024, followed closely by life sciences and financial services with a projected 9.9% increase. Global Capability Centers rank third, expecting a 9.8% salary rise in the upcoming year.

The projected increase in salaries in the Indian formal sector indicates a strategic adjustment in response to the evolving economic landscape,” commented Roopank Chaudhary, partner and chief commercial officer for Talent Solutions at Aon in India. “Despite a conservative global sentiment, industries such as infrastructure and manufacturing continue to project robust growth, indicating the need for targeted investments in certain sectors.