Salaries in India are expected to increase by about 10% this year, the fastest pace among the BRICS nations, a survey by global professional services firm Aon, released today, said.
This would also be the steepest salary rise in five years, with industries such as ecommerce, venture capital, IT, life sciences expected to lead the increments.
“Organizations across industries project a 9.9% salary increase in 2022, compared to 9.3 percent in 2021. The industries with the highest projected salary increases include ecommerce, venture capital, Hi-tech/IT and IT enables services (ITeS) and Life Sciences,” says Aon’s 26th Annual Salary Increase Survey in India.
The study, which was released today, analysed data across 1,500 companies from more than 40 industries.
The survey participants reported the highest attrition figure at 21% in over a decade in 2021.
“Salary increases should come as a welcome break for employees amidst a volatile period. For employers, it could emerge as a double-edged sword when you combine the rising cost of talent with record-high attrition numbers. This trend is fuelled by economic recovery and the need for organizations to invest in new age capabilities to build a resilient workforce,” said Nitin Sethi, partner and CEO of Aon’s Human Capital Solutions in India.
Despite a tough few months with the second and third waves of infections during the COVID-19 pandemic, India continues to project the highest salary increases among the BRIC (Brazil, Russia, India and China) nations in 2022, with Brazil at 5.0%, Russia at 6.1% and China at 6.0%.
“We believe that the fundamentals of the Indian economy remain strong and that there is a positive business sentiment. Even sectors that struggled during the first wave of the pandemic, such as retail, logistics and quick-service restaurants, have bounced back by focusing on modern trade/digital channels, which is reflected in salary increases of 8 percent and above. However, we do see some potential headwinds due to anticipated high inflationary pressures and the still-prevalent COVID-19 threat,” said Roopank Chaudhary, partner in Aon’s Human Capital Solutions in India.