August 17, 2022
The hike will be driven by a labour shortage, inflation concerns, and better earnings
Indian companies are going to budget an average salary increase of 9.8% in 2023, compared to this year's 9.5%
Due to better-than-expected business performance and the need to retain talent, salary increments in 2022 were higher than the allocated budget
Over 58% of the employers in India have budgeted for a higher salary increase this year
India Inc. is expected to witness a 10% median salary increase in 2023, with sectors such as financial services, banking, technology, media, and gaming forecasted to offer the highest increments, according to to report by global advisory firm WTW. The hike will be driven by a labour shortage, inflation concerns, and better earnings.
According to the report, Indian companies are going to budget an average salary increase of 9.8% in 2023, compared to this year’s 9.5%.
Experts mentioned that due to better-than-expected business performance and the need to retain talent, salary increments in 2022 were higher than the allocated budgets. Companies were revising their budgets, as they had a positive outlook after two years of the pandemic.
The report was based on the results of a survey, that had 590 participants from India. The experts further added that higher projections for 2023 reflect cautious business optimism and a continued tight labour market.
Over 58% of the employers in India have budgeted for a higher salary increase this year, compared to last year. About 25% of them did not change the budget, and 5% decreased it, in comparison to 2022. In terms of industries, financial services, banking, technology, media, and gaming are expected to see the highest pay hikes at 10.4%, 10.2%, and 10% respectively.
India Inc’s increments are also expected to be the highest in the Asia Pacific (APAC) region.