Aon Survey Projects Double-Digit Salary Growth to Continue in India Despite Economic Volatility
Salaries in India expected to increase by 10.3 percent in 2023
NEW DELHI (23 February 2023) –
Aon plc (NYSE: AON), a leading global professional services firm, today released insights from its 28th Annual Salary Increase Survey in India. The study, the largest and most comprehensive rewards survey in India, analysed data across 1,400 companies from more than 40 industries.
The survey revealed that salaries in India are expected to increase by 10.3 percent in 2023, compared to an actual increase of 10.6 percent in 2022. Although slightly lower than last year, the projected increase continues to be in the double digits despite concerns about economic volatility, which may be in response to attrition rates. At 21.4 percent, the attrition rate in India for 2022 remained high – a consequence of an ever-changing talent strategy and the ongoing gap between supply and demand of talent.
| Industry |
Projected Salary Increases 2023 (in Percent)
|
| Overall India |
10.3 |
| Technology Platform and Products |
10.9% |
| Global Capability Centers |
10.8% |
| Technology Consulting and Services |
10.7% |
| Financial Institutions |
10.1% |
| Fast Moving ConsumerGoods (FMCG)/Fast |
|
| Moving Consumer Durables (FMCD) |
10.1% |
| Manufacturing |
9.9% |
| Life Sciences |
9.7% |
| Retail |
9.7% |
| Professional Services |
11.2% |
| E-Commerce |
12.2% |
| Other Services |
9.6% |
Roopank Chaudhary, partner, Human Capital Solutions, India at Aon, said, “Rising economic uncertainty and concerns over economic volatility are making salary increase planning especially difficult this year. India Inc. has awarded aggressive salary increases over the last two years, which has some companies grappling with higher wage bills. Globally connected industries, such as Technology Platform and Products, are somewhat cautious in their salary budgets while industries driven by domestic demand, such as Manufacturing or FMCG/FMCD, are bullish on their budget planning as compared to their five-year averages. Forward-looking organisations are therefore contextualizing salary increase planning with data-driven analysis and the unique circumstances of their own industry and organisation to maintain their workforce resilience and make more-informed decisions.”
The survey further reveals that while the merit increase projections that is increase based on individual performance stays steady at 7.8 percent, the non-merit salary increase projections that is increases on top of merit increase such as market corrections, special adjustments and promotions is expected to moderate to 2.8 percent, which is higher than the historical average. This is particularly noteworthy at junior levels where the non-merit increase projections are as high as 3.3 percent.
Pritish Gandhi, director and leader of the Executive Compensation and Governance Practice in India at Aon, said, “The non-merit salary increase projections continue to be moving up as firms’ budget for retaining talent through promotions and off-cycle corrections. As companies look to differentiate and optimise their talent spend, employers are investing more for critical talent in key roles. While it is important for businesses to define and adapt pay increases for both merit and non-merit factors, organisations must take a strategic approach to total rewards to build a resilient workforce and shape their strategies towards long-term drivers of pay and performance.”
About Aon
Aon plc (NYSE:AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries and sovereignties with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business.
For further information on our capabilities and to learn how we empower results for clients, please visit
https://www.aon.com/apac