According to a report published on Thursday, salaries in India are predicted to increase by 10% in 2023. Salary growth in India reached 9.8% in 2022. In the forthcoming year, India will experience the biggest salary increase in the Asia-Pacific (APAC) region, at 10%.
In 2023, wage increases are anticipated to be 6% in China, 8% in Vietnam, 7% in Indonesia, 4% in Hong Kong, and 4% in Singapore, according to the Salary Budget Planning Study from global consulting, broking, and solutions provider WTW.
During the COVID-19 epidemic, incomes had begun to climb more slowly. Salaries increased by 7.5 percent in 2020 after a 9.9 percent increase in 2019. The salaries increased by 8.5% in 2021. In 2022, this will increase to 9.8 percent.
The industries with the largest predicted wage increases at 10% are expected to be those in financial services, tech media and gaming, pharmaceutical and biotechnology, chemicals, and retail. On the other hand, increases in pay are anticipated to be below the industry median in the manufacturing (durable goods), manufacturing (non-durable products), and business process outsourcing sectors.
Yet, the attrition rate is still high in a number of industries, so businesses must keep an eye on economic indicators when deciding how much to pay their employees.
“The main forces behind rising compensation in India right now are business potential and staff retention. Organizations would need to be flexible when preparing their wage budgets while closely monitoring economic data and the labour market.” According to Rajul Mathur, WTW India’s consultant leader for work and rewards,
“With a projected attrition rate of up to 24 percent for key talent segments, organisations must look beyond pay increases and consider changes to their benefits, employee experience strategy, career paths, and the work and stress management support they provide to their employees,” he continued.
The research also stated that approximately 80% of Indian enterprises expect their business revenue to increase over the next 12 months, suggesting that general business confidence is still high.