Companies in Indian will continue to record double-digit pay hikes, with salary expected to increase 10.3 per cent in 2023, according to a Business Standard report quoting Aon Hewitt Global’s survey. It said India is the only major economy where the projected increase continues to be in double digits, notwithstanding concern about economic volatility.
According to the survey, titled ‘Salary Increase Survey’ by global professional services company Aon Hewitt Global, companies dealing with technology platforms and products are expected to witness the highest salary hike this year with an industry average of 10.9 per cent.
Last year, the salaries in India Inc saw a rise of 10.6 per cent in 2022.
Pritish Gandhi, director and leader of the executive compensation and governance practice in India at Aon, “After Covid-19, the projected salary increase for 2023 is 10.3 per cent, clearly highlighting the confidence of companies in India’s growth story.”
Sumit Kumar, chief business officer of TeamLease, said, “Organisations are caught between the devil and the deep blue sea where they have to manage rising costs and retain talent. Under the given circumstances, 10.3 per cent seems viable. While growing inflation and rise in lending interest rates could dampen sentiment of an average salaried employee, the silver lining is that there are no salary cuts which we have seen in earlier recession scenarios.”
“With first the Great Resignation and then the trend of Quiet Quitting, a sizeable proportion of employees appears disengaged from its workspace. Organisations are, therefore, facing a challenge in not only retaining talent but also driving productivity from existing employees,” observes Roopank Chaudhary, partner, human capital solutions, India at Aon, according to the BS report.