MUMBAI: India Inc. will see a 10% median salary hike in 2023, pushed by labour constraints and inflation concerns. Global advisory firm WTW noted that the median increase could translate to a 9.8% hike with financial services, banking, technology, media and gaming companies expected to offer the highest increments.
“Salary budgets for employees in India are projected to increase in 2023, mainly influenced by a continuation of the tight labour market and rising inflation concerns,” said the Salary Budget Planning Report by WTW.
According to the study, companies in India are budgeting an overall median increase of 10% for 2023–translating to an average salary increase of 9.8%–compared with the actual 9.5% rise in 2022.
Corporates with a positive outlook after two years of pandemic are revising their budgets. The study showed that more than half (58%) of employers in India have budgeted for higher salary increases this year compared to last year. About a quarter of them (24.4%) made no change in the budget and only 5.4% have reduced the budget as compared to 2022.
India Inc.’s increments are also expected to be the highest in the APAC region. China is projected to see an increase of 6%, with Hong Kong at 4.0% and Singapore at 4% next year.
Financial services, banking, and technology, media and gaming industries are expected to see the highest salary increase at 10.4%, 10.2%, and 10%, respectively.
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