44% Indian Employees Feel Salary Hike Percentage Is Likely To Be Lower In FY25: Survey

The survey further reveals that more than 21 per cent of respondents expect a salary hike of over 15 per cent,  25.1 per cent expect a salary hike between 15 and 20 per cent

65 per cent of respondents are optimistic about receiving positive appraisals, indicating confidence despite challenging economic circumstances. However, 44 per cent anticipate smaller pay increases in 2024 compared to the previous year, reflecting cautiousness due to economic uncertainties, according to a survey conducted by the platform AmbitionBox, which provides company reviews and salary insights. Interestingly, 22 per cent of respondents foresee salary hikes exceeding 30 per cent.

There is an expectation of an overall decrease in the average pay hike this year, as the Deloitte India Talent Outlook 2024 report states that employers in India are anticipated to implement an average pay increase of 9.0 per cent in 2024, a marginal decrease from the 9.2 per cent figure observed in 2023. Despite this slight dip in the projected growth and apprehensions regarding an economic deceleration, findings from the report suggest that employees continue to harbour optimism regarding their salary expectations.

Expected Salary Hikes

The survey further reveals that more than 21 per cent of respondents expect a salary hike of over 15 per cent,  25.1 per cent expect a salary hike between 15 and 20 per cent, 14.2 per cent expect a salary hike in the range of 21 to 25 per cent, 17.9 per cent expect in between 25-30 per cent and 21.5 per cent are expecting a salary increase 30 per cent this appraisal season.

Commenting on the report's findings, Mayur Mundada, Founder and Business Head of AmbitionBox, said: "We at AmbitionBox are continually fascinated by the insights our surveys uncover. This time, our survey reflects the resilience of Indian employees amidst their fear of economic challenges. While optimism persists, employers need to navigate this period delicately, managing employee expectations effectively while aligning with market realities- formulating policies and programs fostering a positive work environment and sustaining motivation among employees.”

Non-Salary Perks

In addition, 54 per cent of the participants emphasised the significance of non-salary perks such as insurance coverage, benefits, bonuses, workplace amenities, and leave policies within their comprehensive compensation structures. This underscores the evolving preferences of modern employees increasingly prioritising holistic benefits beyond monetary remuneration, indicative of a broader shift towards stability and long-term career considerations.