Contrarily, India reported a single-digit pay increase before the coronavirus pandemic hit the country in 2021, namely 9.3% in 2019 before it decreased to 6.1% in 2020 and 9.3% in 2021.
Digital Desk: According to an Aon plc survey, salaries in India are predicted to climb by 10.4% in 2023 as opposed to a 10.6% annual rise thus far in 2022. This multinational professional services company examined data from 1,300 Indian businesses in more than 40 different industries.
According to survey results, India will have the largest average pay growth worldwide in 2022, at 10.6%, compared to Germany (3.5%), the United Kingdom (4%), the United States (4.5%), China (6%), Brazil (5.6%), and Japan (3%).
Contrarily, India reported a single-digit pay increase before the coronavirus pandemic hit the country in 2021, namely 9.3% in 2019 before it decreased to 6.1% in 2020 and 9.3% in 2021.
Sector-specific data for wage increases
As per the survey, four out of the five sectors with the biggest forecasted wage increases are related to technology and are most affected by the volatility and instability of the current global economic situation.
E-commerce has the greatest forecast growth in salaries, with a 12.8% increase, followed by start-ups with a 12.7% increase, hi-tech/information technology, and services utilising information technology with an 11.3% increase, and financial institutions with a 10.7% increase.
Jang Bahadur Singh, the director of Human Capital Solutions at Aon in India, stated, volatility is a major factor in determining wage increases per industry; as a result, the most unpredictable industries tend to have the highest salary increases.
A higher attrition rate
The report noted that, in addition to wage increases, the attrition rate for the first half of 2022 remained high at 20.3%, only slightly lower than the 21% recorded in 2021, maintaining the pressure on salaries. According to a statement made public by Aon plc, this tendency is anticipated to remain for the upcoming several months.
In a formal statement, Roopank Chaudhary, the partner of Human Capital Solutions at Aon in India, stated that despite headwinds from the global recession and unstable domestic inflations, India's expected pay rises for 2023 are in the double digits. It illustrates how well-performing the Indian economy is in the corporate sector.
To reconcile the impact of rising costs and compensation pressures with a relatively high rate of attrition and the continued demand for vital talent, he noted, company leaders must assess their total incentives plans. They must also guarantee their workforce is resilient both now and in the future.
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