India likely to see double digit pay rises in 2023 - study

Apollo Minerals

26/09/2022 12:07

BENGALURU, Sept 26 (Reuters) - Indian employers are
likely to raise staff pay by 10.4% next year, almost on par with
the 10.6% so far in 2022, Aon PLC  AON.N  said on Monday.
    The prospects of a double-digit salary increase comes as the
south Asian country grapples with soaring inflation amid fears
of a global economic slowdown. India's inflation rose to 7% in
August and has stayed above the central bank's tolerance level
for eight straight months to August. 
   "This (salary) increase is a reflection of the confidence
that corporate India has on its strong business performance,"
Roopank Chaudhary, partner, human capital solutions at Aon in
India, said in a statement, based on a survey.
    The survey analysed data from 1,300 companies across more
than 40 industries.
    Business leaders, however, need to balance the impact of
rising costs and salary pressures with a relatively high rate of
attrition and the ongoing demand for critical talent, Chaudhary
said.    
    Staff exits in the first six months of this year remained
high at 20.3%, but marginally lower than the 21% in 2021, the
survey showed. 
    E-commerce leads sectors with the highest projected salary
increase of 12.8%, followed by start-ups at 12.7%,
hi-tech/information technology and IT-enabled services at 11.3%
and financial institutions at 10.7%. 
 (Reporting by Ashish Chandra in Bengaluru; Editing by Dhanya
Ann Thoppil)
 ((ashish.chandra@thomsonreuters.com; +91 7982114624;))