- 46% of organizations are expected to implement double-digit salary increases by 2023.
- The expected salary increase for 2023 is highest for technology platforms and products (12.9%), followed by e-commerce (12.2%).
- 75% of organizations foresee a significant improvement in their business outlook by 2023.
Even as the news of layoffs hits the headlines, there is good news for Indian workers. Salaries in India are expected to increase by 10.3% in 2023, according to the 28th annual salary increase survey conducted by Aon, a professional services firm. While there are concerns about economic volatility, the expected salary increase remains in the double digits. possibly a result of a high turnover of 21.4% in 2022. In 2022 the actual salary increase was slightly higher, at 10.6%. The study analyzed data from 1,400 companies from more than 40 industries.
The projected salary increase for India is the highest of any major global economy, with China, the US and the UK predicting salary increases of 6.3%, 5.2% and 4.8%. For Brazil it is 7.2%.
“With back-to-back double-digit increases, India Inc. bullish on talent despite fears of global macroeconomic uncertainty. Organizations are increasingly prioritizing their spending on top performers, key talent and talented talent,” said Pritish Gandhi, Aon Director & India Practice Leader, Executive Compensation & Governance.
When it comes to different sectors, the expected salary increase for 2023 is highest for technology platforms and products (12.9%), followed by e-commerce (12.2%). For technology and advisory services, financial institutions and FMCG/FMCD this is 10.7%, 10.1% and 10.1% respectively. Sectors such as telecoms, life sciences, transportation services/logistics and auto/vehicle manufacturing had forecast salary increases of less than 10%.
Companies also continue to award differentiated increments to key employee cohorts. While top performers got a 16.5% increase in 2022, workers with high potential or critical skills got a 15.7% increase. Also, employees with digital skills that can be sought by any industry in need of digital disruption received a 15.1% salary increase.
The survey shows that the recruitment prospects for India inc. remains positive: 19% say they have aggressive hiring prospects, while 56% say they have normal hiring prospects. 23% have a very selective hiring outlook, while 3% say they are looking at a hiring freeze. Also, 75% of organizations foresee a significant improvement in their business outlook in 2023, while only 25% of organizations report a negative impact from economic volatility.
The study further shows that while projections for earnings increases (increase based on individual performance) remained stable at 7.8%, projections for non-earning wage increases (increases on top of earnings increases, such as market corrections, special adjustments and promotions) ) are expected to increase. moderate to 2.8 percent, which is higher than the historical average. This is particularly notable at the junior level, where non-earning increases/forecasts are as high as 3.3%.