Companies in India are expected to give a salary hike of 10% in 2023 due to labor constraints and inflation concern.
Global advisory, broking and solutions company Willis Towers Watson’s Salary Budget Planning reprot noted that the median increase could translate to a 9.8% hike with financial services, banking, technology, media and gaming companies likely 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,” the report said.
According to the study, organizations 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 said.
It showed that more than half (58%) of employers in the country 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.
