Indian Employees Expected To Get 10% Pay Hike In 2023: Report

As per the report, the top three sectors forecast to see the maximum salary increases are related to technology.

The report said that in 2022 average variable pay as a percentage of total compensation was 15.6 per cent as against 14 per cent in 2021.

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Indian employees are expected to get a 10.2 per cent pay hike in FY23, slightly lower compared to the 10.4 per cent hike last year, according to an EY survey, reported MoneyControl. The report cites an EY survey titled 'Future of Pay', saying the projected wage growth for 2023 is lower than the actual growth for 2022 across all job levels, except for blue-collar workers, who are expected to receive a slightly larger decrease in compensation in 2023.

As per the survey, the top three sectors forecast to see the maximum salary increases are related to technology. E-commerce, professional services, and information technology workers are expected to receive 12.5 per cent, 11.9 per cent, and 10.8 per cent salary hikes, respectively.

The report said that in 2022 average variable pay as a percentage of total compensation was 15.6 per cent as against 14 per cent in 2021. Financial institutions had the highest overall variable pay-out percentage of 25.5 per cent, while the telecommunications industry had an overall variable pay-out percentage of 13.7 per cent, relatively lower compared to other sectors. 

The report also shed a light on emerging sectors for jobs. Renewable energy, e-commerce, digital services, healthcare, telecommunications, educational services, retail and logistics, and financial technology are among the most promising emerging sectors for jobs in India in 2023. 

Key responsibilities and talents are also still in demand across industries and are valued highly in the market, the report noted, adding that a premium of 15 per cent to 20 per cent over baseline software engineering salary levels is demanded for technology skills like AI, ML, and cloud computing. A premium of 20 per cent to 25 per cent is charged for analytical talents including risk modeling, data architecture, and business analytics.

For the abilities that are in high demand, 48 per cent of firms charge more. For skills that are in great demand compared to basic skills, the average premium is up to 1.9 times higher. Moreover, pay hikes offered to average vs high-performing talent operate at a ratio of 1:1.8 as an average across sectors.