Indian Companies to Offer Highest Salary Hikes in Asia Pacific in 2024 : Report 

Indian Companies Projected to Offer High Salary Hikes in Asia Pacific in 2024

Indian companies are poised to offer the highest salary hikes in the Asia Pacific region in 2024, according to a recent report by WTW. The report, titled "Salary Budget Planning Report," surveyed over 32,000 companies across 150 countries, including 708 Indian companies.

The report found that Indian companies anticipate granting their employees a salary increase of approximately 9.8% in 2024, closely aligned with the 10% increase observed in 2023. This places India at the forefront of the Asia Pacific region in terms of salary increments.

The report attributes this trend to several factors, including:

• India's youthful and growing population: India has a young and growing population, with a median age of 28.5 years. This youthful workforce is a key driver of economic growth and creates intense competition for talent, leading to higher salary increments.

• A significant number of Indian firms operating in fast-growing sectors: Many Indian companies operate in fast-growing sectors, such as technology, media, gaming, financial services, and retail. These sectors tend to offer more substantial compensation packages to attract and retain top talent.

• Supportive government policies: The Indian government has implemented several policies to foster business growth and job creation. These policies have contributed to economic advancement and created a conducive backdrop for wage growth.

The report also found that the technology, media, gaming, financial services, and retail sectors are projected to offer the highest salary hikes at approximately 10% in 2024. This is due to the high demand for talent in these sectors, the competitive environment, and the emphasis on innovation.

The report also revealed that Indian companies are increasing their salary budgets for the current year due to two key concerns: tightening labor markets and escalating inflation.

• Tightening labor markets: Companies are facing fierce competition to attract and retain top talent in a tightening labor market. This is leading to increased salary offers, as companies are willing to pay premium wages to secure the services of exceptional employees.

• Escalating inflation: The rising cost of living is putting additional strain on salary budgets. Employees are naturally expecting their salaries to keep pace with the rising cost of living. Consequently, employees are expressing higher salary expectations, compelling companies to respond by increasing salaries to a greater extent than they might have otherwise.

The report found that over half of the companies have expanded their salary budgets for the current year when compared to the figures from 2022. A quarter of the companies have even surpassed the budget projections they had set in December 2022. This indicates a growing willingness among companies to provide more substantial salary hikes, even in the midst of economic uncertainty.

Overall, the WTW Salary Budget Planning Report presents a positive outlook for salary increases in India in 2024. Indian companies are expected to offer the highest salary hikes in the Asia Pacific region, with the technology, media, gaming, financial services, and retail sectors leading the way. The report also highlights the increasing willingness of Indian companies to invest in their workforce by providing competitive salaries.