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Business News/ News / India/  How much salary hike can Indians expect this year? See what report shows

Amid layoffs wave, a survey has said that in 2023 the average salary hike in India is projected to be 10 percent which is the highest in the Asia Pacific (APAC) region.

The survey by global advisory, broking and solutions company WTW was conducted in the fourth quarter of 2022 and more than 700 companies in India had participated in it. 

In its latest salary budget planning survey, it states that in 2022, the actual salary increase was 9.8 percent.

Speaking of other Asia Pacific (APAC) region, this year, China is projected to see a salary increase of 6 percent, Vietnam may see 8 percent rise in salary hike while Indonesia could see a hike of 7 percent.

Also Read: Which Indian IT firms are hiring amid layoffs? TCS, Wipro, Infosys, HCL, Tech Mahindra among them

The report states that Hong Kong and Singapore could see the lowest hike in salaries this year with only 4 percent rise. 

The WTW report further states, “Unlike developed markets in the west, there appears to be limited corresponding impact of inflation on salary budgets in India, which have historically been higher than Consumer Price Index (CPI)-based inflation." 

Even after seeing mass layoffs in the tech industry, the report states that IT could see the highest this year with 61.1 percent, followed by engineering, sales among others.

Also Read: Will ChatGPT take away your job? Infosys founder replies

“The 'hot jobs' for recruitment in the next 12 months will be in the roles in Information Technology (61.1 per cent), engineering (54.4 per cent), sales (38.9 per cent), technically skilled trades (35.4 per cent) and finance (11.9 per cent)," the report shows as reported by PTI.

WTW India Consulting Leader, Work and Rewards, Rajul Mathur said, “Business opportunity and employee retention are currently the primary drivers for salary increases in India. Organisations will need to closely monitor economic indicators and the labour market while being flexible in planning their salary budgets."

Also Read: Is a 1-cr annual income enough? High earners speak out

He also said that with a projected attrition rate as high as 24 percent for key talent segments, organisations need to look beyond pay increases and consider adjustments in their benefits, employee experience strategy, career paths, as well as work and stress management support they provide to their employees.

"As the post-pandemic business strategies in several sectors firm up, workforce recalibrations are also taking place. Layoffs are reflective of this recalibration but that does not imply a change in the general positive business outlook," Mathur said.

With similar number, recently another report by professional services firm Aon India said said that Indian companies may raise wages by an average of 10.3 percent this year despite concerns about a global slowdown. According to the Aon report, about 46 percent of Indian companies are ready to roll out double-digit hikes. Compared with the projected 10.3 percent hike in 2023, employees received an actual hike of 10.6 percent in 2022. The study had analysed data across 1,400 companies from more than 40 industries.

(With inputs from PTI)

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Updated: 04 Mar 2023, 08:13 AM IST
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