Indian companies are expected to give a salary hike of 10 per cent in 2023, which is way more than other countries, a report by the advisory firm Willis Towers Watson's Salary Budget Planning said. This is more than the 9.5 per cent hike India Inc gave to its employees last year. The high salary hike projections stem from the companies' intention to retain employees amid rising attrition in the labour market.
The report said 58 percent of the employers in India have gone for a higher salary budget than last year, whereas around 25 percent made no change in the budget. Only 5.4 percent have reduced the budget.
The salary hike will be the highest in the Asia Pacific region. China is projected to see an increase of 6 percent, Hong Kong at 4 percent and Singapore at 4 percent for next year, it added.
The report was based on a survey across 168 countries in April and May 2022, which includes 590 organizations in India.
It further said around 42 percent of companies in India have also projected a positive business revenue outlook for the next 12 months, while only 7.2 percent have projected a negative outlook.
Information Technology (65.5 per cent), engineering (52.9 per cent), sales (35.4 per cent), technically skilled trades (32.5 per cent) and finance (17.5 per cent) are expected to be the most sought-after functions for recruitment in the next 12 months.
The report said the attrition rate in India is the highest in the region at 15.1 percent after Hong Kong.
Financial services, banking and media and gaming sections will see the highest salary increase.
"With increased focus on technology enabled growth, the demand for digital skills is driving pay increases for tech talent, especially in the technology, media and gaming, banking and financial services sectors," a company official said.
With inputs from PTI
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