EY Report Forecasts 9.6% Salary Hike For Indian Employees In 2024

In 2024, e-commerce is anticipated to experience the highest salary growth at 10.9 per cent, followed by financial services, which is predicted to grow by 10.1 per cent

Employees in India are anticipated to receive an average salary increase of 9.6 per cent in 2024, mirroring the actual increase witnessed in 2023, states a new report, 'Future of Pay 2024' released on Wednesday by EY. The report highlights a decrease in overall attrition to 18.3 per cent in 2023, down from 21.2 per cent in 2022. It suggests that attrition rates are expected to gradually decline over the coming years as companies emphasise cost management and employee well-being, aiming to stabilise the workforce amidst high demand for talent.

"While overall average salary increase in India Inc. holds steady compared to last year, certain sectors such as e-commerce, financial services and professional services firms are poised for significant pay raise in 2024," said Abhishek Sen, Partner and Leader of Total Rewards, HR Technology and Learning, People Advisory Services, EY India.

In 2024, e-commerce is anticipated to experience the highest salary growth at 10.9 per cent, followed by financial services, which is predicted to grow by 10.1 per cent. In addition, professional services' salaries are also expected to increase by 10 per cent this year, as outlined in the report.

Furthermore, the report highlights that digital talent constitutes 35 to 40 per cent of the technology workforce, a proportion expected to gain greater importance in the future. Within the realm of digital skills, expertise in Artificial Intelligence (AI), Machine Learning (ML), and Blockchain are highly sought-after, commanding a premium ranging from 30 to 50 per cent.

"Going forward, organisations will harness the transformative power of AI to craft bespoke benefits packages, optimise reward procedures, and elevate overall employee satisfaction at the workplace," Sen said.

Approximately 80 per cent of organisations emphasised the significance of "pay and benefits" and expressed a necessity to transition away from conventional employee benefits in the contemporary workforce.

Employers' primary areas of focus include benefits cost planning, which is at 43 per cent, employee wellness at 29 per cent, and assessing and aligning with industry standards at 20 per cent.