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Salary Increase Forecast for Companies in India in 2024
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Companies in India are expected to give a salary raise of 9.8% in 2024, slightly lower than the actual salary increase of 10% in 2023, as companies across industries are still closely monitoring their cost structures, says a survey.
Significance
The salary increase forecast for companies in India in 2024 holds significance as it provides insights into the future compensation trends and reflects the economic conditions and business outlook of the country. It helps professionals and job seekers understand the potential salary growth in various sectors.
Features
The Willis Tower Watson’s ‘Salary Budget Planning India Report’ indicates that the median salary increase in India is projected to be 9.8% in 2024, close to the actual salary increase of 10% in 2023. This forecast is based on responses from approximately 32,512 companies across 150 countries, including 708 participants from India.
Objectives
The objective of the survey and the salary increase forecast is to provide organizations and individuals with valuable information for planning budgets, setting salary structures, and making informed decisions related to compensation. It helps companies attract and retain talent by offering competitive wages.
Effects
The salary increase forecast influences various aspects of the job market and economy. It impacts organizations’ financial planning, employee morale, and consumer spending. Higher salary increments can lead to increased disposable incomes and an improved standard of living for employees.
Pros and Cons
Pros:
- Provides valuable information for salary reviews and negotiations.
- Helps professionals plan their career paths based on potential salary growth.
- Encourages companies to stay competitive in talent acquisition and retention.
Cons:
- Higher salary increases may lead to inflationary pressures.
- Certain sectors may struggle to afford higher salary increments, impacting their competitiveness.
Fun Fact
Salary increases in India continue to be the highest across the Asia Pacific region. In 2024, Vietnam is projected to have a salary increase of 8%, followed by China (6%), the Philippines (5.7%), and Thailand (5%).
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Mutiple Choice Questions
1. According to Willis Tower Watson’s ‘Salary Budget Planning India Report’, what is the forecasted median salary increase in India for 2024?
a) 10%
b) 9%
c) 9.8%
d) 8%
Explanation: According to the report, the forecasted median salary increase in India for 2024 is 9.8%.
2. In which year did companies in India give a salary increase of 10%?
a) 2022
b) 2023
c) 2024
d) 2025
Explanation: Companies in India gave a salary increase of 10% in the year 2023.
3. Which country in Asia Pacific is projected to have the highest salary increase for 2024?
a) China
b) India
c) Vietnam
d) Philippines
Explanation: Vietnam is projected to have the highest salary increase of 8% in Asia Pacific for 2024.
4. In which sector are salary increments expected to reduce for 2024?
a) IT sector
b) Manufacturing sector
c) Pharmaceuticals sector
d) Media sector
Explanation: Salary increments are expected to reduce in the IT sector for 2024.
5. What are some of the major concerns influencing salary increase budget changes for 2024?
a) Tighter labour markets and rising inflation
b) Decreased demand in the market
c) Decreased profitability for companies
d) Government regulations
Explanation: According to the report, tighter labour markets and rising inflation have been cited as some of the major concerns influencing salary increase budget changes for 2024.
6. Which sectors are expected to see the highest salary increase at 10% for 2024?
a) Technology, media and gaming
b) Financial services and retail sectors
c) Manufacturing and engineering sectors
d) IT and pharmaceutical sectors
Explanation: The technology, media and gaming, financial services, and retail sectors are expected to see the highest salary increase at 10% for 2024.
7. What is the voluntary attrition rate in India for 2023?
a) 15.3%
b) 14.6%
c) 12.9%
d) 16.8%
Explanation: The voluntary attrition rate in India for 2023 is 14.6%.
Brief Summary | UPSC – IAS
Indian companies are anticipated to increase salaries by 9.8% in 2024, slightly less than the actual increase of 10% in 2023, according to Willis Tower Watson’s Salary Budget Planning India Report. The survey revealed that salary increases in India continue to be among the highest in the Asia Pacific region. While the IT sector is expected to see a decrease in salary increments, sectors such as manufacturing, pharmaceuticals, media, gaming, and global captive centres are expanding. Tighter labor markets and rising inflation are cited as major concerns impacting salary budget changes, but more companies have increased their salary hike budgets compared to 2022.