Working in IT services companies? You could expect this much salary hike in 2024
Salary Hikes 2024: In 2023, the average increases were 8.5-9.1% but this year increments are likely be deferred by most companies.
India’s information technology (IT) sector is expected to see flat salaries in 2024 while hiring may also be less in these companies, Economic Times reported quoting sourced from a top hiring firm. IT companies are expected to give average salary appraisals of 8.4-9%. In 2023, the average increases were 8.5-9.1% but this year increments are likely be deferred by most companies to the end of the fiscal first quarter, Munira Loliwala, AVP - strategy and growth, Teamlease Digital, said as per the report. Normally, salary hikes take place April onwards.
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In 2021, the sector saw salary increments at 8.8% which rose to 9.7% in 2022, the data showed as per the report.
“The focus in the IT sector now is on stabilising headcount,” Munira Loliwala said. The sector could register flat or negative growth in headcount this year as well, she said, adding, “Many 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."
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It was earlier reported that in 2023, Infosys, Wipro, and HCLTech either skipped or deferred increments by several months or rolled them out selectively which depended on employee tenure. In December, Infosys rolled out hikes averaging less than 10% effective November, the report claimed, exclusing junior or mid-level employees from any pay hike. Meanwhile, HCLTech and Wipro excluded employees in mid- or senior-level roles. On the other hand, Tata Consultancy Services (TCS) rolled out 6-8% hikes while top performers received double-digit increments in 2023.
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“In most pockets, IT has the largest disbursement (of hikes) as compared to any other sector today,” Munira Loliwala said. Global Capability Centres (GCCs) of big multinational companies are also playing a significant role in hiring by Indian IT companies. These will likely see average salary hikes of 10-10.1% this year.
Banking and Financial Services could see upper-end hikes at about 11.1% this year, she said.
