Salaries in India are expected to rise by 10.4% by 2023

Digital Desk: According to a survey released on Monday, corporate India is optimistic about its strong business performance and expects to pay a double-digit salary increase of up to 10.4 percent in 2023.

According to the latest Salary Increase Survey in India from leading global professional services firm Aon Plc, remunerations in India are expected to increase by 10.4 percent in 2023, compared to a 10.6 percent increase to date in 2022, which is slightly higher than the 9.9 percent increase projected in February.

According to the study, which examined data from 1,300 companies in more than 40 industries in India, the attrition rate for the first half of 2022 remained high at 20.3%, marginally lower than the 21% recorded in 2021, putting pressure on salaries.

According to the survey, this trend is expected to continue in the coming months.

"Despite global recessionary headwinds and volatile domestic inflation, salary increases in India are projected to be in the double digits in 2023," said Roopank Chaudhary, partner, of Human Capital Solutions at Aon in India.

This increase reflects corporate India's confidence in its strong business performance.

"Business leaders, on the other hand, must make decisions that ensure their workforce is resilient today and in the future. They must reconsider their total rewards strategies in order to balance the impact of rising costs and wage pressures with a relatively high rate of attrition and ongoing demand for critical talent "Chaudhary continued.

According to the survey, four of the five sectors with the highest projected salary increases are technology-related, and they also experience the most volatility and impact from current global economic uncertainty.

"With an expected salary increase of 12.8%, e-commerce leads the industries 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%," Chaudhary added.

Volatility is a key determinant of salary increases by industry, according to Jang Bahadur Singh, director, of Human Capital Solutions at Aon in India – the highest salary increases are in the most volatile industries.

"As broader economic conditions impact the talent landscape, businesses must develop holistic rewards strategies tailored to their situation and industry in order to retain and attract the talent they require."

"Data-driven insights provide employers with the clarity and confidence they need to make better decisions and build a resilient workforce across industries," Singh said.