Home Economy India likely to see double digit pay rises in 2023

India likely to see double digit pay rises in 2023


Employers in India are likely to raise staff pay by 10.4% next year, almost on par with the 10.6% so far in 2022, Aon PLC said today. The prospects of a double-digit increase comes as the south Asian country grapples with soaring inflation amid fears of a global economic slowdown. Inflation in India 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 in India.

Business leaders, however, need to balance the impact of rising costs and 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 in India remained high at 20.3%, but marginally lower than the 21% in 2021, the survey showed.

E-commerce leads sectors with the highest projected increase of 12.8%, followed by start-ups at 12.7%, hi-tech/information and IT-enabled services at 11.3% and financial institutions at 10.7%.

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