According to a survey conducted by Aon, Salaries in India are expected to increase by 10.4% in 2023. This salary increase will be slightly lower than that of an annual rise of 10.6% till date in 2022.
This global professional services firm analyzed data across 1,300 companies from over 40 sectors in India. Apart from salary increases, the study stated the attrition rate for the first half of 2022.
The attrition rate continued to be high at 20.3% and is only marginally lower than the 21% recorded in 2021, thus retaining the pressure on salaries.
Roopank Chaudhary, partner, Human Capital Solutions, Aon India said, “Despite the global recessionary headwinds and volatile domestic inflation, salary increases projected in India for 2023 are in the double digits.”
“This increase is a reflection of the confidence that corporate India has in its strong business performance,” said Roopank Chaudhary.
As per the survey reports, globally India is the only country with the highest salary increase in 2022 to date as compared to other countries including:
- Germany (3.5%)
- UK (4%)
- USA (4.5%)
- China (6%)
- Brazil (5.6%)
- Japan (3%)
Contrary to this when the country was hit by the coronavirus pandemic had reported a single-digit salary increase during the pre-pandemic time, that is, 9.3% in 2019 which later fell down to 6.1% in 2020 and 9.3% in 2021.
Jang Bahadur Singh, Director, Human Capital Solutions at Aon in India, said, “Volatility is a key determinant of salary increases by industries – the top salary increases are in the most volatile industries.”
“As the broader economic circumstances impact the talent landscape, businesses must create holistic rewards strategies unique to their situation and sector to retain and attract the talent they need,” Jang Bahadur Singh said.
According to the survey, four out of the five sectors that are expected to have the highest projected salary increase are technology related and experience the highest volatility and impact of current global economic uncertainty.
- The highest projected increase in salary will be 12.8 percent in the e-commerce leads sectors
- Followed by start-ups at 12.7 percent
- Hi-tech/information technology, and information technology-enabled services at 11.3 percent
- Financial institutions at 10.7 percent