Employees in India to get an average salary hike of 10.2 pc this year: Report

Salaries of working professionals in India are expected to go up by an average 10.2 per cent in 2023, according to 'Future of Pay 2023' report by EY. This, however, is a bit lower than the pay hike last year—10.4 per cent.

The top three sectors with the biggest forecasted salary increases are tied to technology, the report said. These are e-commerce, professional services and IT.

The e-commerce segment, at 12.5 per cent, is likely to see the steepest salary growth, followed by professional services (11.9 per cent) and IT (11.6 per cent).

These sectors witnessed an average salary hike of 14.2 per cent, 13 per cent and 11.6 per cent respectively, last year.

Meanwhile, according to the report, e-commerce (27.7 per cent) and technology (22.1 per cent) were two of the sectors which witnessed the highest attrition rate in 2022, apart from financial institutions (28.3 per cent). The average attrition rate was 21.2 per cent.

Inequity in compensation, absence of recognition, stagnation and limited career growth opportunities were cited as the main reasons for attrition.

According to the report, there is an increased demand for technology skills like AI and cloud computing, and 48 per cent of companies offer premium pay for skills that are in high demand. “As the Indian economy continues to grow, competition for top talent is intensifying across various industries. Top talent with critical skills and high-performance history command compensation premiums ranging from 1.7 to 2X of average talent,” according to EY India professional Abhishek Sen.