Deloitte says average corporate salary hike will be around 9% in 2024

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Deloitte India has projected that corporate executives in India may get an average salary increment of 9 per cent in 2024. In its report, Deloitte India Talent Outlook 2024, it stated that increments in 2024 will be better than pre-pandemic levels in all sectors except information technology (IT) and business process outsourcing (BPOs).

Earlier this month, EY said that  India Inc may offer an average salary hike of 9.6 per cent in 2024, just as in 2023. The report, ‘Future of Pay 2024’, highlighted that e-commerce is expected to have the highest salary growth in 2024, at 10.9 per cent, followed by financial services with a projected growth of 10.1 per cent.

Deloitte India’s projection is lower than what it had predicted in 2023 – a 9.2 per cent hike in salaries.

Companies are likely to offer double-digit increments to junior management but “organisations may be stricter with their bell curves, making it harder to secure top ratings,” it said.

Top performers may expect 1.8x in increments given to average-rated employees. For employees rated below average, the increment is expected to be lower at 0.4x this year than 0.6x in 2023.

One out of two companies could pay at-target or above-target bonuses in 2024. The report said that organisations are likely to maintain a 7.5 per cent increment for promotions to retain key talent.

Deloitte said the attrition rate fell from 20.2 per cent in 2022 to 18.1 per cent in 2023 due to slower hiring. 

“With attrition and core inflation in check, organisations focus more on performance management strategies to protect and boost margins,” said Anandorup Ghose, partner (CHRO Programme Leader) at Deloitte India said. “On a global scale, India continues to be the fastest-growing major economy and could witness the highest increment compared with other geographies.”

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