India Inc to roll out 9-10% hike, focus on retaining talent

India Inc. is expected to offer median increments of 9-10%, with macroeconomic pressures pushing companies to be more prudent. Consulting companies, such as Aon, Deloitte, and WTW, which determine corporate compensation across sectors, expect manufacturing, engineering, retail, and pharmaceutical sectors to offer marginally higher salary hikes and the IT sector to bear the brunt of reduced budgets.

- Devina Sengupta

"The hiring frenzy of 2022, when actual salary hikes were at 10.6%, is behind us. The projected hikes for 2024 are expected around 9.4%, which is on a par with actual increments of 2023," said Roopank Chaudhary, partner, human capital solutions, India, Aon.

According to the early data analysis shared with Mint, Aon said while engineering companies might roll out a 10.1% hike compared with 10.5% in 2023, the energy sector could see an 8.8% rise in 2024 versus 8.5% this year. Salary hikes in fastmoving consumer goods, chemical, and retail will be similar to last year's levels, with projected figures of 9.8%, 9.6%, and 10.1%, respectively, against 9.7%, 9.6%, and 10.1%, rolled out this year.