10% salary increase to be likely seen in different sectors by 2023

Due to labour constraints and inflationary concerns, India Inc. will see a 10% median salary increase in 2023. According to Willis Towers Watson’s (WTW) Salary Budget Planning Report, the median increase could be 9.8%, with financial services, banking, technology, media, and gaming companies expected to offer the highest raises. After two years of the Covid-19 pandemic, Indian corporations are revising their budgets with a positive outlook. According to the report, more than half (58%) of Indian employers have budgeted for higher salary increases this year compared to last year. While only a quarter of employers (24.4%) said they made no changes to their budget, only 5.4% said they cut it in comparison to 2022.The highest salary increases are expected in the financial services, banking, technology, media, and gaming sectors, at 10.4%, 10.2%, and 10%, respectively. Concerns about a tighter labour market (68.3%), employee expectations / concerns (44.7%), and anticipation of stronger financial results – actual or forecasted (26.4%) were the most frequently cited reasons for organisations reporting higher 2022 actual salary budgets versus projections made last year.Concerns about a tighter labour market (68.3%), employee expectations / concerns (44.7%), and anticipation of stronger financial results – actual or forecasted (26.4%) were the most frequently cited reasons for organisations reporting higher 2022 actual salary budgets versus projections made last year. Approximately 42% of Indian companies forecast a positive business revenue outlook for the next 12 months, while only 7.2% forecast a negative outlook. Salary increases in India remain the highest in the APAC region, at 10%. China is expected to grow by 6% next year, with Hong Kong growing by 4.0% and Singapore growing by 4%. Voluntary attrition rates in India remain among the highest in the region, at 15.1%, trailing only Hong Kong.The report summarises the results of WTW’s bi-annual salary movement survey, which was conducted in April and May 2022. The survey gathered approximately 22,570 responses from businesses in 168 countries around the world.

By Subhechcha Ganguly