New Delhi: A report released on Wednesday forecasts a 9.5% increase in salaries in India this year, with robust growth projected in industries such as infrastructure and manufacturing.
According to the report by global professional services firm Aon, global capability centers (GCCs) are expected to witness a 9.8% pay hike, while manufacturing will see a salary improvement of 10.1% and life sciences, 9.9%.
Financial institutions’ workforce is anticipated to receive a salary hike of around 9.9%, while tech platforms and services and products will experience a pay growth of 9.5% this year.
The report, analyzing data from nearly 1,414 companies across approximately 45 industries, noted a decrease in overall attrition rates from 21.4% in 2022 to 18.7% in 2023.
“The projected increase in salaries in the Indian formal sector indicates a strategic adjustment in response to the evolving economic landscape,” remarked Roopank Chaudhary, partner and chief commercial officer for talent solutions at Aon in India.
Chaudhary further emphasized that despite a conservative global sentiment, industries like infrastructure and manufacturing continue to demonstrate robust growth, highlighting the necessity for targeted investments in specific sectors.
A decrease in attrition rates is seen as favorable for organizations, enabling them to allocate resources towards enhancing capability and productivity, thus fostering a positive cycle.
“As leaders prepare for 2024, their focus is likely to shift towards building a supportive work environment to foster employee engagement in a dynamic job market,” noted Jang Bahadur Singh, director for talent solutions at Aon in India.
