India to see 10% average salary hike in 2023: Survey

New Delhi, Sept 27: In what would sound pleasing to the ears of working professionals in India, the salaries are expected to increase by 10.4 percent in 2023 as compared to the annual rise of 10.6 percent to date this year, a survey conducted by Aon PLC said.

 

 

 

At present, India is the only country that witnessed the highest salary increase this year, i.e 10.6 percent, which is more than China (6%), Brazil (5.6%), the United States (4.5%), the UK (4%), Germany (3.5%) and Japan (3%), Hindustan Times' business website Livemint reported.

 

 

 

Before Covid-pandemic hit, India had reported a single-digit salary increase of 9.3 percent in 2019. It dropped to 6.1 percent in 2020 but rose to 9.3 percent last year in the pandemic era. The e-commerce sector leads with an expected salary increase of 12.8 percent. The startups follow with 12.7 percent, the IT-enabled services at 11.3 percent, and the financial institutions have an expected salary increase of 10.7 percent. The study also pointed out that the attrition rate for the first half of 2022 continued to be high at 20.3 percent and only marginally less than the 2021 rate of 21 percent. The report stated that the trend is expected to continue for the next few months. The report said that the salary hikes projected in India for the next year are in the double digits despite the ‘global recessionary headwinds and volatile domestic inflations'.

 

Also Read: India will grow at 7.3% in 2023: S&P report 

 

The report also suggested that business leaders take decisions to ensure the workforce remains resilient today as well as into the future. The report added, "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."