ITC sees 24% upgrade in salaries above Rs 1 crore amid expansion and profit growth

ITC Limited has reported a significant growth in the number of employees earning more than Rs 1 crore annually, with a growth of 24.11% in FY24 compared to the previous year. According to the company’s annual report, 68 additional high-ranking officers joined the top pay bracket, taking the total number to 350 in financial year 2023-24 from 282 in 2022-23.
The substantial growth in high-income employees highlights ITC’s expanded operations and profitability. The company spent Rs 6,134.35 crore on employee benefits on a consolidated basis in FY24, which includes Rs 5,352.94 crore in salaries and wages. This marks an increment of 6.9% over the previous year when the company spent Rs 5,736.22 crore, which included Rs 4,885.49 crore on salaries and wages.
A report in The Telegraph attributes this trend to ITC’s growing portfolio, necessitating an increase in hiring. In the last two to three years, ITC has opened eight new factories and two hotels across India, boosting its human resource deployment.
ITC’s profitability has also seen substantial grow, with profit increasing 24.5% to Rs 18,753.31 crore in FY23. This increase has resulted in an upward adjustment in employee remuneration. As of 31 March 2024, ITC employed 24,567 permanent employees. The average remuneration of employees increased by 5%, while the average remuneration increased by 10% in FY24. Excluding key managerial personnel (KMPs), average remuneration increased by 9%.
The average salary of male employees, excluding KMPs and board members, was Rs 7,14,281, while the average salary of female employees was Rs 7,03,725. ITC has diversified its presence across sectors including tobacco, packaged foods, paper and paperboard, hospitality, agri commodities and health and personal care (FMCG).