Median merit salary increments in India are expected to reach 10% in 2024, on top of a 9.5% increase in 2023, according to the Total Remuneration Survey by Mercer, a business of Marsh McLennan.
The continuous focus on AI and automation has propelled key industries like automobile, manufacturing and engineering, and life sciences into a new phase of growth, said Mansee Singhal, rewards consulting leader for Mercer in India.
“The strong salary growth in these sectors can be attributed to several factors, including technological advancements, increasing demand for skilled professionals, and a focus on innovation and research,” Singhal told ET. “These sectors have demonstrated resilience and adaptability, driving economic growth and creating employment opportunities,” she added.
The survey details salary trends across various industries, with individual performance, organisation performance, and position in salary range being the top three factors determining increments. It gathered data from 1,474 companies, covering more than 6,000 job roles and representing more than 2.1 million employees.
The median merit salary increment is a measure used to determine the average salary increase given to employees within an organisation. It represents the middle value of all salary increases, where half of the employees receive a higher increment and the other half receive a lower increment.The report also states that on-demand roles in India, such as AI (artificial intelligence) and data science are experiencing significant growth and are poised to shape the future of industries.“As businesses across sectors recognise the transformative potential of AI and data science, there is a growing emphasis on building a strong talent pool in these domains,” Singhal said. “The salary increments in these on-demand roles reflect the high demand and scarcity of skilled professionals, as organisations compete to attract and retain top talent.”
In India, the rate of voluntary attrition has shown a gradual increase from 12.1% in 2021 to 13.5% in 2022. The half-yearly data for 2023 indicates a slight increase in attrition compared to 2022, suggesting a continuing upward trend in voluntary attrition each year, which is being reflected in some other parts of the world including Brazil, China, Australia, and Japan.
“Leveraging technology for operational efficiencies and embracing skills-based frameworks can help companies stay ahead and capitalise on the opportunities presented by India’s economy,” Singhal said. “By embracing these strategies, businesses can not only attract top talent but also contribute to the overall growth and success of the Indian market,” she added.