Double-digit pay increases will continue for at least one more year. According to the Salary Increase Survey report by AON, Indian employers plan to increase average salaries by at least 10.4% in 2023, which is a little less than the 10.6% predicted for 2022 so far.
Details about Starting in 2023, India will grant average pay rises of at least 10.4%
In comparison to other large nations like the USA, the UK, and Japan, the average pay increases in percentage terms for 2022 are the largest in India, the survey stated.
“Salary increases in India are predicted to be in the double digits for 2023, despite domestic inflation that is erratic and the effects of the global recession. The confidence that business in India has in its robust financial performance is reflected in this increase, according to Roopank Chaudhary, partner, of Human Capital Solutions, Aon India.
However, he continued, business leaders must make choices that ensure their workforce is resilient both now and in the future.
The survey also revealed that, as of 2022, the e-commerce industry has experienced the largest growth in terms of pay increases, with a 13.7% increase. Average wage increases of 12.8% are anticipated in the e-commerce sector in 2023.
The professional services and information technology sectors are also expected to follow a similar pattern. In 2023, both are probably to experience average pay increases of 12.4% and 11.3%, respectively.
The lowest average salary increase is anticipated to be offered by the cement industry, which was one of the most severely affected by the Covid epidemic, at 8.7%. At 9% and 9.9%, respectively, the hotel and fast-moving consumer goods (FMCG) industries are likewise anticipated to experience one of the lowest increases in 2023.
“Volatility is a crucial factor in determining compensation increases by industry; the most volatile industries experience the highest salary increases. Businesses must develop comprehensive rewards strategies specific to their situation and industry to retain and attract the talent they require as the overall economic environment has an impact on the talent landscape, according to Jang Bahadur Singh, director of human capital solutions at Aon in India.
In comparison to middle and senior management, junior management employees will likewise have the highest average compensation increases in 2023, at 10.8%, according to the survey. However, it is anticipated that junior management salaries will increase by less than 11.1% in 2022.
The attrition rate overall is also anticipated to decrease, from 21% in 2022 to 20.3% in 2023, according to the research.