The year 2024 holds promising news for private sector employees, with expected salary increments reaching up to 9.8%. These findings emerge from the recent ‘Salary Budget Planning India Report’ by Willis Tower Watson (WTW), showing a slight dip from the 10% real salary growth observed in the Indian job market during 2023.
Indian Economy – Projected Growth
The International Monetary Fund (IMF) has projected India’s GDP to grow by 6.3% in fiscal year 2024 and 2025 , making it the fastest-growing major economy in the world. This growth will be supported by strong domestic demand, which is expected to remain resilient despite global economic challenges.
As we approach the year-end, discussions are buzzing regarding what employees can expect in terms of salary increments for the upcoming year. Through comprehensive surveys, various agencies have been making predictions. The ‘Salary Budget Planning India Report’ from Willis Tower Watson (WTW) reveals that Indian companies are preparing to boost their employees’ salaries by an estimated 9.8% in 2024, aligning closely with the 10% real wage growth noted in the prior year.
Survey Methodology Insights
The survey’s timing adds weight to its findings, conducted diligently during April and May 2023, aggregating approximately 32,512 responses from businesses spanning 150 countries. India made a substantial contribution, providing 708 participants. The Asia Pacific region displayed robust participation, with 7,372 organizations responding from 22 markets. Notably, India is projected to witness the most significant salary upswing within the Asia Pacific region. Projections point to 8% wage growth in Vietnam, 6% in China, 5.7% in the Philippines, and 5% in Thailand for 2024.
Sector-specific Salary Expectations
The WTW Salary Budget Planning Report suggests that businesses might augment their salary budgets by around 10% next year, driven by factors such as a tight labor market and elevated inflation. Among the sectors, those in technology, media, gaming, financial services, and retail are poised to experience the most substantial benefits. Forecasts indicate potential salary growth of up to 10%.
The banking, financial services, and insurance (BFSI) sector observed a 9.8% salary boost this year, aligning with the retail sector. Projections for the next year maintain a consistent expectation of 10% growth. Similarly, the captives sector might witness a salary increase of 9.9% in 2024, a modest uptick from the 9.8% experienced in the current year.