India records highest salary increase of 10.6% in 2022 across world: Study

According to an Aon plc survey, salaries in India are predicted to climb by 10.4% in 2023 as opposed to a 10.6% annual rise thus far in 2022. This multinational professional services company examined data from 1,300 Indian businesses in more than 40 different industries.

According to survey results, India will have the largest average pay growth worldwide in 2022 at 10.6%, compared to Germany (3.5%), the UK (4%), the US (4.5%), China (6%), Brazil (5.6%), and Japan (3%).

Contrarily, during the pre-pandemic period, India reported a single-digit pay increase, which was 9.3% in 2019 before dropping to 6.1% in 2020 and 9.3% in 2021 when the country was affected by the coronavirus.

According to the survey, four out of the five sectors with the biggest forecasted wage increases are related to technology and are most affected by the volatility and instability of the current global economic situation. E-commerce has the greatest forecast growth in salaries, with a 12.8% increase, followed by startups with a 12.7% increase, hi-tech/information technology and services utilising information technology with an 11.3% increase, and financial institutions with a 10.7% increase.

The report noted that, in addition to wage increases, the attrition rate for the first half of 2022 remained high at 20.3%, only slightly lower than the 21% recorded in 2021, maintaining the pressure on salaries.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.