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Salaries in India are expected to rise 10 per cent in 2023, a survey released on Thursday said. In 2022, salaries in India had risen by 9.8 per cent. At 10 per cent, India would see the highest rise in salaries in the Asia-Pacific (APAC) region in the upcoming year.
According to global advisory, broking, and solutions company WTW's Salary Budget Planning Survey, China is projected to see a salary hike of 6 per cent, Vietnam at 8 per cent, Indonesia at 7 per cent, Hong Kong at 4 per cent and Singapore at 4 per cent in 2023.
The rise in salaries had dipped during the Covid-19 pandemic. From 9.9 per cent in 2019, the salaries rose by 7.5 per cent in 2020. In 2021, the salaries were up 8.5 per cent. This recovered to 9.8 per cent in 2022.
Financial services, tech media and gaming, pharmaceutical and biotechnology, and chemicals and retail sectors are expected to see the highest salary increases at 10 per cent. On the other hand, salary hikes in manufacturing (durable goods), Manufacturing (non-durable goods) and business process outsourcing sectors are expected to be below the industry median.
However, the attrition rate remains high in several fields and companies need to monitor the economic indicators while planning salaries.
"Business opportunity and employee retention are currently the primary drivers for salary increases in India. Organisations will need to closely monitor economic indicators and the labour market while being flexible in planning their salary budgets," Rajul Mathur, consulting leader of Work and Rewards at WTW India said.
"With a projected attrition rate as high as 24 per cent for key talent segments, organisations need to look beyond pay increases and consider adjustments in their benefits, employee experience strategy, career paths, as well as work and stress management support they provide to their employees," he added.
The report further said that nearly 80 per cent of Indian companies have an upward business revenue outlook for the next 12 months, implying that overall business confidence remains high.
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First Published: Thu, March 02 2023. 14:16 IST
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