According to Willis Towers Watson’s Salary Budget Planning report, companies in India are expected to give a salary hike of 10 percent in 2023.
Rajul Mathur, Consulting Leader India – T&R at Willis Towers Watson said, “Despite the economic headwinds, higher projections for 2023 reflect cautious business optimism and a continued tight labour market, WTW Consulting Leader India, Work, and Rewards.”
“The financial services, banking, and technology, media, and gaming sectors are expected to see the highest salary increase at 10.4 percent, 10.2 percent, and 10 percent, respectively”, he stated.
Rajul Mathur further said, “We saw significant salary increases across sectors in 2022 and a similar trajectory is expected in 2023. With increased focus on technology-enabled growth, the demand for digital skills is driving pay increases for tech talent, especially in the technology, media and gaming, banking and financial services sectors.”
Global advisory, broking, and solutions company Willis Towers Watson’s Salary Budget Planning report found the following:
- Companies in India are budgeting an overall increase of 10 percent for 2022-23, compared with the actual 9.5 percent growth in the previous year.
- More than half (58 percent) of the employers in India have budgeted for higher salary increases for the ongoing fiscal year compared to last year, while a quarter of them (24.4 percent) made no change in the budget.
- Only 5.4 percent have reduced the budget as compared to 2021-22.
- The report revealed that at 10 percent, salary increases in India continue to be the highest in the Asia Pacific (APAC) region.
- Around 4 percent of companies in India have also projected a positive business revenue outlook for the next 12 months, while only 7.2 percent have projected a negative outlook.
- In addition, Information Technology (65.5 percent), engineering (52.9 percent), sales (35.4 percent), technically skilled trades (32.5 percent), and finance (17.5 percent) are expected to be the most sought-after functions for recruitment in the next 12 months.
- Voluntary attrition rates in India continue to be amongst the highest in the region at 15.1 percent, only second to Hong Kong, it observed.
- China is projected to see an increase of 6 percent, Hong Kong at 4 percent, and Singapore at 4 percent for next year, it added.
- Last year saw actual salary increments being higher than budgets and this was largely due to better-than-expected business performance and the need to retain talent.
The report is based on a survey across 168 countries in April and May 2022, which includes 590 organizations in India. The firms in India are struggling with rising attrition in the tight labour market hence they have decided to rise their salaries.
