The average salary hike in India is projected to be 10 per cent this year, the highest in the Asia Pacific (APAC) region, according to a survey. In 2022, the actual salary increase was 9.8 per cent, global advisory, broking and solutions company WTW said in its latest salary budget planning survey.
The survey was conducted in the fourth quarter of 2022 and more than 700 companies in India participated in it. This year, China is projected to see a salary increase of 6 per cent, Vietnam (8 per cent), Indonesia (7 per cent), Hong Kong (4 per cent) and Singapore (4 per cent).
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Unlike developed markets in the west, there appears to be limited corresponding impact of inflation on salary budgets in India, which have historically been higher than Consumer Price Index (CPI)-based inflation, WTW said in a report. As per the report, the 'hot jobs' for recruitment in the next 12 months will be in the roles in Information Technology (61.1 per cent), engineering (54.4 per cent), sales (38.9 per cent), technically skilled trades (35.4 per cent) and finance (11.9 per cent).
"Business opportunity and employee retention are currently the primary drivers for salary increases in India. Organisations will need to closely monitor economic indicators and the labour market while being flexible in planning their salary budgets," WTW India Consulting Leader, Work and Rewards, Rajul Mathur said.
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He also said that with a projected attrition rate as high as 24 per cent for key talent segments, organisations need to look beyond pay increases and consider adjustments in their benefits, employee experience strategy, career paths, as well as work and stress management support they provide to their employees."As the post-pandemic business strategies in several sectors firm up, workforce recalibrations are also taking place. Layoffs are reflective of this recalibration but that does not imply a change in the general positive business outlook," Mathur said.
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