Who doesn’t like a hike in salary? Every individual wants growth in their career along with a fatty salary package. Numerous sectors are paying a heavy amount to their employees but the salary package in the Information Technology (IT) sector is pretty impressive compared to other sectors. In the latest addition, the Economic Times has shared a report that states that the IT sector of India is expected to witness flat salaries this year (2024). The reports further added that hiring in these companies may also be less. Economic Times report quoted by a top hiring firm that shares this news with the media outlet.
According to the reports, Salary increases of 8.4 — 9% on average are anticipated from IT companies. Last year, the average increment in salaries was 8.5-9.1%, however in 2024 the salary hike in the IT sector will likely be deferred by most firms to the end of the fiscal first quarter, as stated by Munira Loliwala, AVP strategy and growth, Teamlease Digital. The company, long regarded as a main contributor to the economic growth of the company, is expected to see a more cautious approach to recruitment and compensation strategies. It is happening for the first time as most of the time, the appraisals happened in April.
As we mentioned above, Loliwala states that the average salary hike in the IT sector is expected to range between 8.4% and 9% in this year. As per data shared with the report, In 2021, the IT sector witnessed a salary hike at 8.8 per cent which surged up to 9.7% in 2022. Loliwala said that “The focus in the IT sector now is on stabilising headcount. According to her statement, the IT sector could witness flat or negative growth in inventory by 2024 as well. She added that “Numerous large MNCs recently did their round of hikes in December 2023, though not very great, which accounted for an average of 7% for most roles.”
In 2023, it came into notice that, HCLTech, Infosys, and Wipro either deferred or skipped appraisals by numerous months or rose selectively which totally depended on length of services. Last December, Infosys flatten appraisals averaging less than 10 percent effective November 2023, as mentioned in the report shared by the company, excluding mid-level or junior employees from any salary increment. Whereas, Wipro and HCLTech excluded their members of the workforce in middle or senior level roles.
On the contrary, Tata Consultancy Services (TCS) deployed around 6 to 8 per cent salary increments while top performers of the firm get double bonus in form of salary hike in 2023. Loliwala said, “In most pockets, IT has the largest disbursement (of hikes) as compared to any other sector today.” Besides it, Global Capability Centers (GCCs) of big multinational firms are paying a significant contribution in appointment by Indian IT firms. These will likely witness an average increment in salary of 10-10.1 per cent in 2024.
The Banking and Financial Services sector, Loliwala predicts average increases of 11.1% for the Banking and Financial Services industry, meaning bigger increases at the upper end could be seen.
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