India records highest salary hike in 2022, races ahead of China: Report

In what would sound pleasing to the ears of working professionals in India, the salaries are expected to increase by 10.4 per cent in 2023 as compared to the annual rise of 10.6 per cent to date this year, a survey conducted by Aon PLC said. At present,

India is the only country which witnessed the highest salary increase this year, i.e 10.6 per cent, which is more than China (6%), Brazil (5.6%), United States (4.5%), UK (4%), Germany (3.5%) and Japan (3%), Hindustan Times’ business website Livemint reported.

Before Covid-pandemic hit, India had reported a single-digit salary increase at 9.3 per cent in 2019. It dropped to 6.1 per cent in 2020 but rose to 9.3 per cent last year in the pandemic era.

The e-commerce sector leads with an expected salary increase of 12.8 per cent. The startups follow with 12.7 per cent, the IT-enabled services at 11.3 per cent and the financial institutions have an expected salary increase of 10.7 per cent.

The study also pointed out that the attrition rate for the first half of 2022 continued to be high at 20.3 per cent and only marginally less than the 2021 rate of 21 per cent. The report stated that the trend is expected to continue for the next few months.

The report said that the salary hikes projected in India for the next year are in the double digits despite the ‘global recessionary headwinds and volatile domestic inflations’.

The report also suggested that the business leaders take decisions to ensure the workforce remains resilient today as well as into the future.

The report added,”They also need to review their total rewards strategies and balance the impact of rising costs and salary pressures with a relatively high rate of attrition and the ongoing demand for critical talent.”