Despite slowdown, India Inc. will give the highest salary hike in Asia-Pacific. Report
India Inc. may expect an average pay increase of 9.75% in 2024 as opposed to 9.5% in the previous year, according to the Compensation Survey. Another reason for this development is that businesses are attempting to concentrate on cost control while keeping key talent in place.
Despite the slowdown, India Inc. will give the highest salary hike in Asia-Pacific, the latest compensation survey report revealed.
Even though the global employment market is slowing down, Indian workers might do better than others.
According to the most recent survey conducted by Korn Ferry, Indians will receive the highest pay increases in the Asia-Pacific area this year. This is due to the fact that India’s economy is still more flexible than those of other nations, even in the midst of the global economic downturn.
India Inc. may expect an average pay increase of 9.75% in 2024 as opposed to 9.5% in the previous year, according to the Compensation Survey. Another reason for this development is that businesses are attempting to concentrate on cost control while keeping key talent in place.
Vietnam comes in second in the Asia-Pacific region with an average income growth of 6.7% in 2024 (6.89% in 2023), ahead of Indonesia with 6.53% (6.43% last year), according to the survey. The least likely country for employees to receive a 2.5% pay increase is Japan (2.7% last year).
According to press reports, India’s GDP growth is predicted to outpace that of other nations during the global economic downturn, according to Navneet Singh, Chairman and Regional Managing Director of Korn Ferry.
According to Navneet, there is still a talent shortage for crucial positions, and Indian enterprises are continuously growing. Given the circumstances, a significant pay increase would be necessary to keep skill in the position. Financial services, global competence centers (GCC), product firms, chemicals, industrial products, and retail are anticipated to see the highest rate of wage increases in 2024—10%—while IT services is anticipated to experience the lowest rate of increase—7.8%.
Consumer goods companies are likely to receive lower pay increases by about 8.7%, according to a survey of 706 companies. Oil and gas companies, including automotive (9.79%), construction and building materials (9.696), life sciences and health care (9.59%), and utilities (9.55%), are among those offering average wage growth above 99%.
Median salary hike of 9.7% in India in 2024
The private sector in India is likely to see a median pay hike of 9.7% in 2024, compared to 9.5% last year.
The expected pay hike in other countries in the Asia-Pacific region is as follows:
- Vietnam: 6.7% median pay hike expected in 2024 (6.8% in 2023)
- Indonesia: 6.5% in 2024 (6.4% last year)
- Japan: 2.5% in 2024 (2.7% last year)
Sector-wise, salary hike expected for 2024
| Sectors | Projected Median salary hike (2024) | Actual median salary hike (2023) |
| Automotive | 9.70% | 9.60% |
| Construction | 9.60% | 9.40% |
| Oil & gas | 9.50% | 9.90% |
| Life Sciences | 9.50% | 9.10% |
| Consumer goods | 8.70% | 8.30% |
| IT services | 7.80% | 7.40% |
Who will get the maximum hike in 2024?
According to the survey, companies will allocate 60% more incentives to top performers in 2023 than to employees who meet expectations.
This year is predicted to see the continuation of the same pattern.
In fact, two times the incentives of an ordinary performance are demanded of top performers.
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