From IT to manufacturing to hospitality – How much salary hike can you expect in 2024?

• Companies are positioned to implement salary increments ranging from 8% to 10% for their broader employee base.
• While salary increases may not reach the initially anticipated levels, a complete freeze is unlikely.
• Sectors still recovering from the pandemic's impact, such as tourism and hospitality, may witness more subdued hike levels.

2024 is likely to be a tricky year for jobseekers. Companies are mindful of economic headwinds and may exercise cost control measures, potentially impacting bonuses or promotions.

“Recognising this landscape, companies are positioned to implement salary increments ranging from 8% to 10% for their broader employee base. Moreover, certain pivotal roles or exceptional contributors may warrant special consideration, leading to a disproportionate salary hike,” says Kartik Narayan, CEO of TeamLease Services.

This could be attributed to extraordinary individual performance or the heightened demand for specific roles crucial to organisational objectives.

Expected salary hikes in 2024


Note: These figures are base salary increases and may not include bonuses, variable pay, or other benefits. The salary hike range within each sector may vary depending on factors like employee experience, skill set, and company performance.

Source: Adecco India

Salary hikes may remain muted

Initial projections for India's 2024 salary hikes suggested moderate to double-digit increases, sparking optimism across various sectors.

“However, a closer examination of the global economic landscape reveals potential challenges. Concerns about a possible recession, inflationary pressures, and geopolitical uncertainties could restrict companies' ability to offer significant salary increases, tempering initial expectations,” says Manu Saigal, Director, General Staffing, Adecco India.

Notably, sectors still recovering from the pandemic's impact, such as tourism and hospitality, may witness more subdued hike levels. Likewise fields like technology and finance that bear the brunt of global economic headwinds will also lead to below average hike trends.

Despite these concerns, the demand for skilled talent remains robust, particularly in flourishing sectors. To retain existing talent and attract new recruits, companies may still need to offer competitive compensation packages.

“While salary increases may not reach the initially anticipated levels, a complete freeze is unlikely. The actual scenario will depend on the interplay between global economic anxieties and India's persistent need for skilled professionals across various industries,” says Saigal.

What employees can consider

In the rapidly evolving landscape of modern business, it is imperative for the workforce to invest in upskilling initiatives to maintain a competitive edge strategically.

“Employees should proactively identify and cultivate the essential skills necessary for both current and future demands, thereby enhancing their professional trajectory. Additionally, fortifying domain expertise and industry knowledge is a pivotal catalyst for individual success within their roles,” says Narayan.

Employees can expect a tough year ahead, so it helps to be prepared. Saigal stresses on the importance of developing competencies like communication, problem-solving, and critical thinking that can be applied across different roles and industries. Also, one needs to be comfortable with data analysis, automation tools, and relevant technologies in their field.

While the economic climate may be uncertain, it is important to focus on your personal growth and stay positive.