NEW DELHI: India Inc is likely to give out a 9.9% salary hike in 2022 as compared to 9.3% in 2021, according to Aon Survey released on Wednesday. The survey adds this is the highest hike in the last five years.
The study that analysed data across 1,500 companies from more than 40 industries, noted that survey participants reported the highest attrition figure at 21% in over a decade in 2021. It added that highest attrition in over two decades signifies the impact of ‘great resignation’ on India.
The industries with the highest projected salary increases are e-commerce and venture capital, hitech/IT and IT enabled services (ITeS) and life sciences, the survey said. The report goes on to add that despite a tough few months with the second and third waves of infections during the Covid-19 pandemic, India continues to project the highest salary increases among the BRIC (Brazil, Russia, India and China) nations in 2022. In Brazil, salary increments will be 5.0%, Russia at 6.1% and China at 6.0%.
“Salary increases should come as a welcome break for employees amidst a volatile period. For employers, it could emerge as a double-edged sword when you combine the rising cost of talent with record-high attrition numbers,” Nitin Sethi, partner and CEO of Aon’s Human Capital Solutions in India said. “This trend is fuelled by economic recovery and the need for organisations to invest in new-age capabilities to build a resilient workforce,” Sethi said.