Salaries in India expected to increase by 10.4% in 2023: Survey

Corporate India is confident in its solid financial results and anticipates paying out a double-digit salary increase. The latest Salary Increase Survey in India from renowned international professional services firm Aon Plc predicts that salaries in India would rise by 10.4 per cent in 2023, compared to a 10.6 per cent increase that has already occurred in 2022. This is slightly higher than the 9.9 per cent increase predicted in February. According to the report, which examined data from 1,300 organizations in India across over 40 industries, the attrition rate for the first half of 2022 was high at 20.3 per cent, just slightly lower than the 21 per cent recorded in 2021. This kept increasing stress on salaries. As per the survey, this pattern is expected to persist for several months. India currently has the biggest pay growth globally, compared to other nations such as Germany (3.5 per cent), the United Kingdom (4 per cent), the United States (4.5 per cent), China (6 per cent), Brazil (5.6 per cent), and Japan (3 per cent).

According to Roopank Chaudhary, partner of Human Capital Solutions at Aon in India, salary increases anticipated in India for 2023 are in double digits despite the global recessionary challenges and fluctuating domestic inflation. This rise reflects corporate India’s confidence in the country’s robust economic performance.

Based on the survey, four out of the five sectors with the largest forecasted income growth are related to technology and are most affected by the volatility and instability of the current global economic situation. E-commerce has the largest projected growth in salaries at 12.8 per cent, followed by start-ups with a 12.7 per cent increase, hi-tech/information technology and information technology-enabled services with an 11.3 per cent hike, and financial institutions with a rise of 10.7 per cent.

Jang Bahadur Singh, director of Human Capital Solutions at Aon in India noted that volatility is a significant factor in determining wage increases per industry, and the most volatile industries have the highest salary increases.

Businesses must develop comprehensive incentive plans that are specific to their situation and industry in order to retain and recruit the talent they require as the overall economic environment has an impact on the talent landscape. Employers can make better decisions and develop a dependable workforce across all industries with the help of data-driven insights.

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