Indian companies expected to give 10% hike in 2023: Report

India

oi-Deepika S

Mumbai,
Aug
16:
Indian
companies
are
expected
to
give
a
salary
hike
of
10
per
cent
in
2023
as
they
struggle
with
rising
attrition
in
the
tight
labour
market,
according
to
a
report.

Global
advisory,
broking
and
solutions
company
Willis
Towers
Watson’s
Salary
Budget
Planning
report
found
that
companies
in
India
are
budgeting
an
overall
increase
of
10
per
cent
for
2022-23,
compared
with
the
actual
9.5
per
cent
growth
in
the
previous
year.

According
to
the
report,
more
than
half
(58
per
cent)
of
the
employers
in
India
have
budgeted
for
higher
salary
increases
for
the
ongoing
fiscal
year
compared
to
last
year,
while
a
quarter
of
them
(24.4
per
cent)
made
no
change
in
the
budget.

Only
5.4
per
cent
have
reduced
the
budget
as
compared
to
2021-22,
it
added.
The
report
revealed
that
at
10
per
cent,
salary
increases
in
India
continue
to
be
the
highest
in
the
Asia
Pacific
(APAC)
region.

Chhattisgarh
govt
announces
6%
DA
hike
for
govt
employees

China
is
projected
to
see
an
increase
of
6
per
cent,
Hong
Kong
at
4
per
cent
and
Singapore
at
4
per
cent
for
next
year,
it
added.

The
report
was
based
on
a
survey
across
168
countries
in
April
and
May
2022,
which
includes
590
organisations
in
India.

It
further
said
around
42
per
cent
of
companies
in
India
have
also
projected
a
positive
business
revenue
outlook
for
the
next
12
months,
while
only
7.2
per
cent
have
projected
a
negative
outlook.

In
addition,
Information
Technology
(65.5
per
cent),
engineering
(52.9
per
cent),
sales
(35.4
per
cent),
technically
skilled
trades
(32.5
per
cent)
and
finance
(17.5
per
cent)
are
expected
to
be
the
most
sought-after
functions
for
recruitment
in
the
next
12
months.

DA
hike:
These
states
increase
dearness
allowance
by
3%
for
government
employees
on
Independence
Day

Voluntary
attrition
rates
in
India
continue
to
be
amongst
the
highest
in
the
region
at
15.1
per
cent,
only
second
to
Hong
Kong,
it
observed.