India Inc may raise pay by 10.3% this year

Indian companies may raise wages by an average of 10.3% this year despite concerns about a global slowdown, professional services firm Aon India said, as companies seek to retain talent amid the highest attrition in 14 years.

- Devina Sengupta

Employee turnover of 21.4%, changes in talent strategies, and a demand gap in the supply chain are pushing firms to offer double-digit pay hikes, a study by Aon India showed.

"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," Roopank Chaudhary, partner, human capital solutions, India at Aon, said in an interview.

According to the Aon report, about 46% of Indian companies are ready to roll out double-with the digit hikes. Compared projected 10.3% hike in 2023, employees received an actual hike of 10.6% in 2022. The study analysed data across 1,400 companies from more than 40 industries.