According to a survey conducted by Aon PLC, salaries in India are expected to rise by 10.4 percent in 2023, compared to the annual rise of 10.6 percent so far this year.
At the moment, India is the only country with the highest salary increase this year, at 10.6 percent, which is higher than China (6%), Brazil (5.6%), the United States (4.5%), the United Kingdom (4%), Germany (3.5%), and Japan (3%).
Prior to the Covid pandemic, India reported a single-digit salary increase of 9.3 percent in 2019. It fell to 6.1% in 2020, but jumped to 9.3% last year during the pandemic.
The e-commerce industry leads with a 12.8% expected salary increase. Startups come in second with 12.7%, IT-enabled services come in third with 11.3%, and financial institutions are expected to see a 10.7% salary increase.
The study also noted that the attrition rate for the first half of 2022 remained high at 20.3%, only marginally lower than the 2021 rate of 21%. According to the report, the trend is expected to continue in the coming months.
According to the report, despite “global recessionary headwinds and volatile domestic inflations,” salary increases in India are expected to be in the double digits over the next year.
The report also suggested that the business leaders take decisions to ensure the workforce remains resilient today as well as into the future.
The report added, “They also need to review their total rewards strategies and balance the impact of rising costs and salary pressures with a relatively high rate of attrition and the ongoing demand for critical talent.”
