PremiumAccording 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.
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Salaries in India are expected to increase by 10.4% in 2023 as compared to an annual rise of 10.6% to date in 2022, according to a survey conducted by Aon plc. This global professional services firm analyzed data across 1,300 companies from over 40 countries in India.
Globally, India is the only country with highest salary increase in 2022 to date, that is, 10.6% as compared to other countries including Germany (3.5%), UK (4%), USA (4.5%), China (6%), Brazil (5.6%), and Japan (3%), as per the survey reports.
In contrary to this, India had reported single-digit salary increase during pre-pandemic time, that is, 9.3% in 2019 which later fell down to 6.1% in 2020 and 9.3% in 2021, when the country was hit by coronavirus pandemic.
Sector-wise salary increment numbers
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.
With an expected salary increase of 12.8%, e-commerce leads sectors with the highest projected increase, followed by start-ups at 12.7%, hi-tech/information technology, and information technology-enabled services at 11.3%, and financial institutions at 10.7%.
Jang Bahadur Singh, the director of Human Capital Solutions at Aon in India, said that volatility is a key determinant of salary increases by industries, hence, the top salary increases are in the most volatile industries.
Increase in attrition rate
Apart from salary increases, the study stated that the attrition rate for the first half of 2022 continued to be high at 20.3%, only marginally lower than the 21% recorded in 2021, thus retaining the pressure on salaries. This trend is expected to continue for the next few months, as per an official release issued by Aon plc.
In an official statement, Roopank Chaudhary, the partner of Human Capital Solutions at Aon in India said that the salary increases projected in India for 2023 are in the double digits, despite the global recessionary headwinds and volatile domestic inflations. It reflects corporate India has on its strong business performance.
However, business leaders must make decisions that ensure their workforce remains resilient today as well as into the future and they also 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.