BackHow much salary hike Indian IT sector employees can expect this year
The survey also saw the highest attrition figure in over a decade in 2021 at 21%.
PremiumIndian companies are expected to give out a 9.9% salary hike in 2022 compared to 9.3% in 2021, according to the Salary Increase Survey by global professional services firm Aon.
According to the Aon report, the industries with the highest projected salary increases are e-commerce and venture capital, IT and IT-enabled services (ITeS), and life sciences.
The biggest projected salary increase is reported in e-commerce companies at 12.4%. Information technology companies are projected to give a salary hike of 11.6% in 2022 as against the actual 11.2% in 2021.
The survey also saw the highest attrition figure in over a decade in 2021 at 21%.
The survey also stated that despite a tough few months with the second and third waves of infections during the COVID-19 pandemic, India continues to project the highest salary increases among the BRIC (Brazil, Russia, India and China) nations in 2022, with Brazil at 5.0 percent, Russia at 6.1 percent and China at 6.0 percent.
The study analysed data across 1,500 companies from more than 40 industries.
The report noted that 33% of organizations are expected to give double digit salary increases in 2022; an increase of 5 percentage points from 2021. “Higher increments would be as a result of a positive business outlook and economic recovery," it adds.
Nitin Sethi, partner and CEO of Aon’s Human Capital Solutions in India, commented, “Salary increases should come as a welcome break for employees amidst a volatile period. For employers, it could emerge as a double-edged sword when you combine the rising cost of talent with record-high attrition numbers. This trend is fueled by economic recovery and the need for organizations to invest in new age capabilities to build a resilient workforce."
Roopank Chaudhary, partner in Aon’s Human Capital Solutions in India, said, “We believe that the fundamentals of the Indian economy remain strong and that there is a positive business sentiment. Even sectors that struggled during the first wave of the pandemic, such as retail, logistics and quick-service restaurants, have bounced back by focusing on modern trade/digital channels, which is reflected in salary increases of 8 percent and above. However, we do see some potential headwinds due to anticipated high inflationary pressures and the still-prevalent COVID-19 threat."
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
