Companies in India are expected to dole out an average of 10 per cent salary increase this year, with automobile, manufacturing and engineering sectors anticipated to witness the highest hikes, says a survey. In 2023, the average salary hike was 9.5 per cent, according to consultancy firm Mercer’s Total Remuneration Survey (TRS) released on Tuesday.
“This trend showcases India’s strong economic performance and its growing appeal as a hub for innovation and talent. Employees in the automobile, manufacturing & engineering and life sciences in India are projected to see the highest salary increment increases, highlighting the competitive nature of these sectors,” it said. The survey, conducted between May and August 2023, gathered data from 1,474 companies, covering more than 6,000 job roles and representing more than 21 lakh employees.
It focused on salary trends across various industries, with individual performance, organisation performance and position in salary range being the top three factors determining increments. The median merit salary increments in India are expected to reach 10 per cent in 2024, which was on top of a 9.5 per cent increase in 2023, the survey said.
In India, it said the rate of voluntary attrition has shown a gradual increase from 12.1 per cent in 2021 to 13.5 per cent in 2022. “The half-yearly data for 2023 indicates a slight increase in attrition compared to 2022, suggesting a continuing upward trend in voluntary attrition each year, which is also being reflected in other parts of the world, including Brazil, China, Australia, and Japan,” Mercer said.
Mansee Singhal, Rewards Consulting Leader for Mercer in India, said the projected salary increments highlight both confidence and optimism in the Indian market, driven by robust economic indicators and a thriving business landscape. The continuous focus on AI and automation has propelled key industries like automobile, manufacturing & engineering and life sciences into a new phase of growth, Singhal added.
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