Growth in salary India 2020-2023

In 2023, the salary increase across India was 10 percent, the highest since 2020. The salary increase in India was the highest among the Asia-Pacific countries. However, the growth in salaries is expected to go down slightly in 2024 to 9.8 percent.

Sectors driving growth

Tighter labor markets and inflation could influence the salary increases in 2024. Salary increases in the country have stabilized at high single digits following the pandemic surge in 2022. The hikes were mainly driven by sectors such as e-commerce, technology, professional services, etc. The e-commerce industry has experienced rapid growth over the years driven by factors such as internet penetration, rising consumer spending, and the pandemic.

Outlook

The projected lower increase in salary in 2024 could also be related to the cooling attrition trends. The overall attrition in India in 2023 stood at 18.7 percent, a decline from the peak of 2022 as part of the resignation wave. This underscores a softening demand for talent and people holding onto their jobs in the face of global headwinds.