A recent survey conducted by consultancy firm Mercer indicates that companies in India are poised to implement an average salary increase of 10 per cent this year. The survey, known as the Total Remuneration Survey (TRS), released on Tuesday, highlights the anticipated upward trend in salary increments, with the automobile, manufacturing, and engineering sectors expected to witness the highest hikes.
According to the TRS, the average salary hike in 2023 stood at 9.5 per cent, demonstrating a consistent rise. The survey, which gathered data from 1,474 companies between May and August 2023, covered over 6,000 job roles, representing more than 21 lakh employees across various industries.
Factors such as individual performance, organisation performance, and position in the salary range were identified as the top three determinants for increments.
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The median merit salary increments for 2024 are projected to reach 10 per cent, building upon the previous year’s increase. Notably, the survey also pointed out a gradual increase in voluntary attrition rates in India, rising from 12.1 per cent in 2021 to 13.5 per cent in 2022. Mercer noted that the trend continued in 2023, indicating a steady upward trajectory in voluntary attrition.
Mansee Singhal, Rewards Consulting Leader for Mercer in India, commented on the findings, stating that the projected salary increments reflect confidence and optimism in the Indian market. Singhal attributed this positive outlook to robust economic indicators and a thriving business landscape.
Singhal also highlighted the significant role of AI and automation in driving growth in key industries such as automobile, manufacturing, engineering, and life sciences, propelling them into a new phase of development.
The survey’s results underscore India’s strong economic performance and growing appeal as a hub for innovation and talent, particularly in competitive sectors like automobile, manufacturing, and engineering.