Employees in India can expect wages to rise in 2023

After an annual rise of 10.6% in 2022, which is the highest in the world, salaries in India are expected to increase by 10.4% in 2023.
By: | September 28, 2022
Topics: Compensation and Benefits | Employee Experience | India | News

This was according to a survey conducted by Aon, which analysed data across 1,300 companies from over 40 sectors in India.

The survey found India’s salary increase in 2022 to be the highest compared to those from other countries, including Germany (3.5%), the UK (4%), the US (4.5%), China (6%), Brazil (5.6%), and Japan (3%).

This is in contrast with that from pre-pandemic periods, where India reported a 9.3% increase in 2019. After the country was hit by the pandemic, the rate fell to 6.1% in 2020 and 9.3% in 2021.

By industry, four out of the five sectors that are expected to have the highest projected salary increase are technology related and experience the highest volatility and impact of current global economic uncertainty. 

With an expected salary increase of 12.8%, e-commerce leads sectors 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%.

READ: Number of informal workers expected to decline in India

Apart from salary increases, the study reported that the attrition rate for the first half of 2022 continued to be high at 20.3%, only marginally lower than the 21% recorded in 2021, thus retaining the pressure on salaries. This trend is expected to continue for the next few months, reported Mint.