India Will Beat China In Salary Raise! Indian Employees Expected To Get 10% Salary Hike, Highest In Asia
A new report has stated that Indian companies will see a 10% median salary hike in 2023.
The numbers are affected by labor constraints and inflation concerns, as per the report by the Salary Budget Planning Report by WTW.
Global Advisory Firm Report States: Salary Increment To Increase By 9.8%
WTW(Willis Towers Watson) is a global advisory firm, whose report states that the median increase would hike by 9.8%. Also, it is reported that financial services, banking, technology, media, and gaming companies will offer the highest increments.
The report includes a summary of the results of WTW’s bi-annual salary movement survey. This survey was conducted in April and May 2022.
The survey collected approximately 22,570 sets of responses from companies in 168 countries worldwide, with 590 survey participants from India.
As per Salary Budget Planning Report by WTW, “Salary budgets for employees in India are projected to increase in 2023, mainly influenced by a continuation of the tight labor market and rising inflation concerns.”
According to the study, companies in India are budgeting a 10% overall median increase for 2023. This is a 9.8% average salary increase, as compared to the 9.5% increase in 2022.
More Than 58% Indian Employers Budgeted For Higher Salary Increases
Additionally, after two years of the pandemic, corporations with a positive outlook are revising their budgets. According to the study, more than half (58%) of Indian employers have budgeted for higher salary increases this year compared to last year. A quarter of them (24.4%) made no changes to their budgets, while only 5.4% reduced their budgets in comparison to 2022.
According to the report, approximately 42 percent of Indian companies have projected a positive business revenue outlook for the next 12 months. Only 7.2 percent predict a negative future.
Rajul Mathur, Consulting Leader India, Work and Rewards, WTW said in a statement: “2022 saw actual salary increments being higher than budgets and this was largely due to better-than-expected business performance and the need to retain talent.”
He also stated that despite the economic headwinds, higher projections for 2023 reflect cautious business optimism and the labour market’s continued tightness.
As per the report, the increments on India Inc are expected to be highest in the APAC region. Additionally, it has been projected that China will reportedly see an increase of 6%, Hong Kong at 4.0% and Singapore will see an increase of 4% next year.
The report also states that the highest salary increases are expected in the financial services, banking, technology, media, and gaming industries, at 10.4%, 10.2%, and 10%, respectively.