A new report has claimed that this year companies can increase the salary of their employees by about 10 percent. This has been said in a report by advisory company EY.
Companies in the country can increase the salaries of their employees by an average of 9.6 percent in 2024. This is equal to last year’s salary increase. This estimate has been made in a report by advisory company EY. The report also said that the overall attrition rate has declined from 21.2 percent last year to 18.3 percent by 2022.
It is likely to decrease further in the next few years. The report says that the highest salary increase of 10.9 percent is expected in the e-commerce sector in 2024. After this, a salary increase of 10.1 percent is expected in the financial services sector.
It says that the salaries of employees working in the professional services sector will increase by 10 percent in 2024. This report is based on information received from 80 companies from different sectors.
The average number of employees in these companies is between 5,000 to 10,000. It says that Indian companies will give an average salary increase of 9.6 percent in 2024, which is the same as the actual increase in 2023.
Salary increase more in professional fields
Abhishek Sen of EY India said, “The overall average salary growth in Indian companies is stable compared to last year, but some professional sectors like ecommerce, financial services and service sector may see significant salary growth in 2024.
There is also a clear trend towards adopting higher reward value propositions to drive better ROI across industries. “Moving forward, organizations will harness the transformative power of AI to create unique benefits packages, optimize reward processes, and increase overall employee satisfaction in the workplace.”
Attrition rate
According to the report, attrition rates in India are fluctuating, influenced by macroeconomic factors and internal corporate strategies. The overall attrition rate fell to 18.3% in 2023, from 21.2% in 2022. The highest levels of attrition in 2023 were in financial services (24.8%), professional services (24.2%) and information technology (23.3%).
This year, the number of voluntary attrition declined slightly, while the rate of involuntary attrition increased, especially among global companies, indicating layoffs in the IT and startup sectors due to global economic changes.
