Infosys: Known for its higher average annual increments, Infosys saw average hikes fall to 9% in FY24, down from 14.6% in FY22, with FY23 noting 9.9%.
TCS: TCS reflected a similar trend, granting average hikes of 7-9% in FY24, compared to 10.5% in FY22.
Wipro: Employees at Wipro experienced a median remuneration hike of 9.4% compared to the previous year.
Tech Mahindra and HCLTech have maintained average hikes between 5% and 7%. HCLTech reported an average hike of 6.8% in FY22, which dropped to 5% last year. Tech Mahindra's average increment stood at 5.6% in FY24, down from 6% in the previous year and 5.2% during the pandemic year when other firms provided double- digit raises.
While top performers still receive substantial hikes, most employees witnessed a moderation in salary increments. Recruiters highlight higher raises for niche skill sets in AI, ML, cybersecurity, and data analytics, driven by digital transformation. Rising employment costs also impact most IT professionals.
Exceptions
While most employees at Infosys, TCS, and Wipro experienced single-digit salary increments in FY24, there are exceptions:1. Top Performers: High-performing employees continue to receive substantial hikes, often exceeding the average. Their contributions to critical projects and niche skill sets (such as AI, ML, cybersecurity, and data analytics) are rewarded.
2. Niche Skills: Professionals with specialized skills in emerging technologies receive better increments. Companies prioritize talent in areas like cloud computing, blockchain, and automation.
3. Leadership Roles: Salary hikes for leadership positions (such as project managers, architects, and directors) tend to be more generous due to their strategic impact.
4. Promotions: Employees who receive promotions can expect larger increments, especially when moving to higher job grades.
Industry-wide trends in salary increments can vary based on factors like economic conditions, occupation, and company policies. Over the past decade, the average annual salary increase has hovered between 3% to 5%. However, this can vary significantly based on individual circumstances.
These raises counteract inflation by adjusting salaries to match the current cost of living. Given the economic impact of the COVID-19 pandemic, inflation rates have risen significantly.
Technology transformation sector is driving pay raise trends in 2024, with an impressive 63% surge. Supply Chain and Procurement, Sales and Marketing, and Human Resources also show substantial Increases. Retail, Hospitality, and Product and Skilled Trades have seen the largest base salary increases recently.
Professionals switching jobs, especially in talent-short fields like tech, can anticipate substantial pay raises ranging from 10% to 15%.
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