According to Reuters, Indian businesses will probably raise employee remuneration by 10.4% in 2023, which is almost exactly in line with the 10.6% increase so far in 2022. The probability of a salary increase in the double digits comes as the south Asian country battles with surging inflation amid worries of a worldwide economic collapse. The central bank’s tolerance target for inflation was exceeded for an additional eight months as India’s inflation climbed to 7% in August.
Roopank Chaudhary, partner of human capital solutions at Aon in India, said in a statement based on a survey that the increase in remuneration demonstrates ‘the confidence that corporate India has in its good business success’. For the survey, information from 1,300 firms across more than 40 categories was analysed. Chaudhary continued, ‘The impact of rising expenses and compensation pressures must be balanced with the relatively high rate of turnover and the ongoing requirement for critical talent’.
Staff turnover was still high in the first half of this year (20.3%), according to the report, although it was significantly lower than the 21% in 2021. E-commerce has the highest predicted pay increase of all other sectors at 12.8%, followed by start-ups, hi-tech/information technology and IT-enabled services at 11.3%, financial institutions at 10.7%, and IT-enabled services at 10.8%.
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