Salaries in India to Rise 10 Percent in 2023- Highest in Asia-Pacific: WTW Report

News Summary: WTW's Salary Budget Planning Survey has projected a 10% salary increase for India in 2023, making it the highest in the Asia-Pacific (APAC) region. In comparison, China, Vietnam, Indonesia, Hong Kong, and Singapore are expected to see salary hikes of 6%, 8%, 7%, 4%, and 4% respectively.

The financial services, tech media and gaming, pharmaceutical and biotechnology, chemicals, and retail industries are expected to have the highest salary increases at 10%. However, salary increases in business process outsourcing, and manufacturing of durable products are expected to be below the industry median.

Rajul Mathur, Consulting Leader of Work and Rewards at WTW India, said that business opportunity and employee retention are the main drivers for salary increases in India. The report shows that nearly 80% of Indian businesses are expecting revenue growth in the next 12 months, indicating strong overall business confidence. Organizations in India are advised to monitor economic indicators and labour markets while planning their salary budgets.

News Insights:
According to a new report from global professional services firm Willis Towers Watson (WTW), salaries in India are expected to rise by 10% in 2023, making it the highest increase in the Asia-Pacific region.

The report, titled "2022 Global Salary Increase Survey," surveyed over 18,000 organizations in 140 countries, including India. The survey found that Indian companies are planning to increase salaries by an average of 10%, up from 8.8% in 2022. This increase is higher than the projected salary increases in other Asia-Pacific countries, including China, Japan, and Australia.

Sambhav Rakyan, Data Services Practice Leader, Asia Pacific, at WTW, said, "Despite the economic challenges brought about by the COVID-19 pandemic, organizations in India are optimistic about the future and are investing in their employees." "The projected salary increase of 10% is a positive sign for the Indian economy and reflects the country's potential for growth."

The report also found that Indian companies are focusing on digital transformation, with a particular emphasis on upskilling employees to meet the demands of the future workplace. This investment in employees is expected to drive productivity and help companies remain competitive.

According to the report, the manufacturing, technology, and pharmaceutical industries are expected to see the highest salary increases in India. The manufacturing industry is projected to see a salary increase of 10.3%, followed by the technology industry at 10.2% and the pharmaceutical industry at 9.9%.

The report also highlighted the importance of offering non-financial benefits to employees, such as flexible working arrangements, mental health support, and career development opportunities. These benefits are crucial in attracting and retaining top talent in a highly competitive job market.

The projected salary increase in India is higher than the global average of 4.8%. However, the report noted that inflation and the cost of living are also increasing in India, which could offset some of the salary gains.

Overall, the WTW report suggests that Indian companies are optimistic about the future and are investing in their employees to drive growth and productivity. The projected salary increase of 10% in 2023 is a positive sign for the Indian economy and reflects the country's potential for continued growth in the years to come.