Home / Industry / Human Resource /  India Inc to see 10% median pay hike in ’23: WTW report
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MUMBAI : India Inc. will see a 10% median salary hike in 2023 driven by labour shortage, inflation concerns, and better earnings, global advisory firm WTW said. Sectors such as financial services, banking, technology, media, and gaming are expected to offer the highest increments.

“Salary budgets for employees in India are projected to increase in 2023, mainly influenced by a continuation of the tight labour market and rising inflation concerns," said the Salary Budget Planning Report by WTW.

According to the study, companies in India are budgeting an overall median increase of 10% for 2023, translating to an average salary increase of 9.8%, compared with the actual 9.5% increase in 2022.

“2022 saw actual salary increments being higher than budgets and this was largely due to better-than-expected business performance and the need to retain talent," said Rajul Mathur, consulting leader, India, work and rewards, WTW. The survey had 590 participants from India. “Despite the economic headwinds, higher projections for 2023 reflect cautious business optimism and a continued tight labour market," he said.

WTW found that corporates had a positive outlook after two years of the covid pandemic and were revising their budgets. More than half (58%) of the employers in India have budgeted for a higher salary increase this year than last year.

About a quarter of them (24.4%) made no change in the budget and only 5.4% have reduced the budget as compared to 2022.

India Inc’s increments are also expected to be the highest in the APAC region. China is projected to see an increase of 6%, with Hong Kong at 4% and Singapore at 4% next year. But attrition remains a worry, among the highest in the region at 15.1%, only second to Hong Kong (15.70%)

Financial services, banking, and technology, media, and gaming are expected to see the highest pay hikes at 10.4%, 10.2%, and 10% respectively.

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