Private sector to dole out average 10% salary hike in 2024, says survey

Salary hike expected: Private companies are projected to give an average salary increase of 10 per cent this year, with the automobile, manufacturing, and engineering sectors likely to see the highest hikes, as per a survey conducted by consultancy firm Mercer.  

The survey, which gathered data from 1,474 companies between May and August 2023, covered more than 6,000 job roles and over 21 lakh employees. It highlighted that the average salary hike in 2023 was 9.5 per cent.

The survey noted that strong economic performance and its increasing appeal as a hub for innovation and talent are driving these trends. Employees in the automobile, manufacturing and engineering, and life sciences sectors are expected to receive the highest salary increments, reflecting the competitive nature of these industries.

Factors such as individual performance, organisation performance, and position in the salary range were found to be the top three determinants of increments.

Mercer reported that median merit salary increments are expected to reach 10 per cent in 2024, building on the 9.5 per cent increase in 2023. The survey also highlighted a gradual increase in voluntary attrition rates, from 12.1 per cent in 2021 to 13.5 per cent in 2022.

Mansee Singhal, Rewards Consulting Leader for Mercer in India, stated that the projected salary increments reflect confidence and optimism in the Indian market, driven by strong economic indicators and a thriving business landscape. She added that the focus on AI and automation has propelled key industries like automobiles, manufacturing and engineering, and life sciences into a new phase of growth.

(with PTI inputs)