Pay hikes may dip, but top talent stand to gain

Cooling inflation to make 9.5% average hike more attractive than before

- Devina Sengupta

Annual appraisals may fetch an average pay hike of 9.5% this year while top performers stand to win 1.74 times more, a survey of employers found, in an indication of companies going the extra mile to retain top talent.

This will also be the lowest pay hike since 2021, when the average increase was 9.3%. Last year, companies had given an average hike of 9.7%, the survey by consulting firm Aon showed. Even though pay hikes may be on similar lines as last year, it may make a bigger difference this year, Aon said, pointing to the decline in inflation. The real wage growth (salary increase minus inflation) this year will be 4.9%, against last year's 4.2%, it said.