Salary Hike Projections for 2023 Expected at 10.3% : Aon Report
The 28th Annual Salary Increase Survey conducted by Aon revealed a 21.4 percent attrition rate in India for 2022, which remained high. The consequence of an ever-changing talent strategy and the ongoing gap between supply and demand for talent
Salary Hike Projections for 2023 Expected at 10.3% : Aon Report
Now, the companies are figuring out the final outcome for the financial year 2022–2023. With this, every employee is also looking for good salary hike projections for 2023 to fulfill their financial needs.
A salary hike survey conducted by global professional services firm AON PLC reveals that salaries in India are expected to increase by 10.3 percent in 2023, which is expected to be 0.3 percent lower than the actual increase of 10.6 percent in 2022. But still, it ranks highest among major world economies and Asian peers.
As per Aon survey report, this year projected hike, although slightly lower than last year, the projected increase continues to be in the double digits despite concerns about economic volatility, which may be in response to attrition rates.
The 28th Annual Salary Increase Survey conducted by Aon revealed a 21.4 percent attrition rate in India for 2022, which remained high. The consequence of an ever-changing talent strategy and the ongoing gap between supply and demand for talent
Industry | Projected Salary Increases 2023 (in Percent) |
Overall India | 10.3 |
Technology Platform and Products | 10.9 |
Global Capability Canter’s | 10.8 |
Technology Consulting and Services) | 10.7 |
Financial Institutions | 10.1 |
Fast Moving Consumer Goods (FMCG)/Fast Moving Consumer Durables (FMCD) | 10.1 |
Manufacturing | 9.9 |
Life Sciences | 9.7 |
Retail | 9.7 |
Professional Services | 11.2 |
E-Commerce | 12.2 |
Other Services | 9.6 |
Roopank Chaudhary, partner, Human Capital Solutions, India at Aon, said rising economic uncertainty and concerns over economic volatility are making salary increase planning especially difficult this year. India Inc. has awarded aggressive salary increases over the last two years, which has some companies grappling with higher wage bills.
The survey further reveals that while the merit increase projections that is increase based on individual performance stays steady at 7.8 per cent, the non-merit salary increase projections that is increases on top of merit increase such as market corrections, special adjustments and promotions is expected to moderate to 2.8 per cent, which is higher than the historical average.
This is particularly noteworthy at junior levels, where the non-merit increase projections are as high as 3.3 percent.
Director and leader of the Executive Compensation and Governance Practice in India at Aon, Pritish Gandhi, stated that the non-merit salary increase projections continue to be moving up as firms budget for retaining talent through promotions and off-cycle corrections.
“As companies look to differentiate and optimize their talent spend, employers are investing more on critical talent in key roles. While it is important for businesses to define and adapt pay increases for both merit and non-merit factors, organizations must take a strategic approach to total rewards to build a resilient workforce and shape their strategies towards long-term drivers of pay and performance.”
This whole study is based on the largest and most comprehensive rewards survey in India, which analyzed data across 1,400 companies from more than 40 industries.
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