BENGALURU: Despite recessionary headwinds and domestic inflation, salaries in India are expected to increase by 10.4% in 2023, compared to an actual increase of 10.6% in 2022, which is slightly higher than the 9.9% increase projected in February, according to a survey.
E-commerce sector leads with the highest projected increase in salary at 12.8% in 2023, followed by start-ups at 12.7%, says Professional services firm Aon India’s 28th Annual Salary Increase Survey 2022-23, released on Monday.
Apart from these sectors, hi-tech, information technology and IT-enabled services are expected to increase salary by 11.3% and financial institutions by 10.7%. The survey suggests increase in salary across sectors, even as the attrition rate for the first half of 2022 continues to be high at 20.3%, only marginally lower than 21% recorded in 2021, thus retaining the pressure on salaries. The study, which analysed data across 1,300 companies from more than 40 industries, says this trend is expected to continue for the next few months.
Roopank Chaudhary, partner, Human Capital Solutions at Aon in India, said, “Salary increases that are projected in India for 2023 are in the double digits. This increase is a reflection of the confidence that corporate India has on its strong business performance.”
Business leaders, however, must make decisions that ensure their workforce remains resilient today as well as into the future. They need to review their total rewards strategies and balance the impact of rising costs and salary pressures with a relatively high rate of attrition and the ongoing demand for critical talent, he added.
FMCG/FMCD (Fast moving consumer durables) leads in the bottom five sectors, followed by transportation services or logistics with projected salary increases of 9.9% and 10%, respectively.
The survey also found that 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.
E-comm sector likely to raise salary by 12.8%
E-commerce sector leads with the highest projected increase in salary at 12.8% in 2023, followed by start-ups at 12.7%, as per a survey, released on Monday. Apart from these sectors, hi-tech, IT and IT-enabled services are likely to hike salary by 11.3% and financial institutions by 10.7%