India Inc expected to give 10.3% hike in 2023 vs 10.6% in 2022
1 min read 23 Feb 2023, 01:05 PM ISTWhile the merit increase projections of an individual's performance is steady at 7.8%, the non-merit salary increase projections is expected to moderate to 2.8%, which is higher than the historical average
PremiumMumbai: India Inc is expected to roll out a 10.3% salary hike for its workforce amid market volatility and recessionary wave. High attrition rates at 21.4% , changing talent strategies and gap in supply chain demand are pushing companies to offer the double-digit hikes.
"Rising economic uncertainty and concerns over economic volatility are making salary increase planning especially difficult this year. India Inc. has awarded aggressive salary increases over the last two years, which has some companies grappling with higher wage bills," said Roopank Chaudhary, partner, Human Capital Solutions, India at Aon.
Compared to the projected 10.3% hike for 2023, employees received an actual hike of 10.6% in 2022.
"Globally connected industries, such as technology platform and products, are somewhat cautious in their salary budgets while industries driven by domestic demand, such as manufacturing or FMCG/FMCD, are bullish on their budget planning as compared to their five-year averages," Chaudhary added.
The study, analysed data across 1,400 companies from more than 40 industries. Aon's study also showed that while the merit increase projections of an individual's performance is steady at 7.8%, the non-merit salary increase projections that is increases on top of merit increase such as market corrections, special adjustments and promotions is expected to moderate to 2.8%, which is higher than the historical average.
