Salaries in India likely to rise by 10.4 per cent in 2023, claims survey

TNI Bureau: Despite recessionary headwinds and domestic inflation, salaries in India are expected to rise by 10.4% in 2023, compared to 10.6% in 2022, which is slightly higher than the 9.9% increase projected in February, according to a survey.

According to Aon India’s 28th Annual Salary Increase Survey 2022-23, released on Monday, the e-commerce sector has the highest projected salary increase in 2023, at 12.8%, followed by start-ups at 12.7%.

Aside from these industries, salaries in high-tech, information technology, and IT-enabled services are expected to rise 11.3%, while financial institutions will rise 10.7%. The survey indicates salary increases across sectors, even as the attrition rate for the first half of 2022 remains high at 20.3%, only marginally lower than the 21% recorded in 2021, putting pressure on salaries. According to the study, which analyzed data from 1,300 companies across more than 40 industries, this trend is expected to continue in the coming months.

In the bottom five sectors, FMCG/FMCD (Fast moving consumer durables) leads, followed by transportation services or logistics, with projected salary increases of 9.9% and 10%, respectively. According to the survey, four of the five sectors with the highest projected salary increases are technology-related, and they also experience the most volatility and impact from current global economic uncertainty.