How much salary hike in 2023? The financial year has come to an end. It’s time for appraisal and salary hikes based on an employee’s performance. However, after so many layoffs by Multinational Corporations (MNCs) in the last few months people are doubtful if the company is planning to raise salaries at all. Read further to know which sectors to thrive and how much salary hike for which job in the coming financial year 2023-2024.
According to an Aon survey, the average salary projection for 2023 will be about 10.3 per cent in India. It is slightly lower than last year as it was 10.6 per cent in 2022.
The survey also revealed that people in India are all set to get the highest increment (10.3) followed by China, where the office goers are likely to get a hike of 6.3 per cent. In the USA and the United Kingdom too, the average salary projection for 2023 will be round about 5.2 and 4.8 per cent respectively.
Roopank Chaudhary, the Partner of Aon India & South Asia, in his interview with the TOI Business Bytes, said that sectors with stronger domestic demand are projecting higher increases this year.
Chaudhary informed that the industries where the salary increase is expected are Tech Platforms & Products (10.9 per cent), Global Capability Centres (10.8 per cent), Tech Consulting and Serv. (10.7 per cent), Financial Institutions (10.1 per cent), FMCG/FMCD (10.1 per cent), Manufacturing (9.9 per cent), Life Sciences (9.7 per cent), Retail (9.7 per cent), Professional Services (11.2 per cent), E-Commerce (12.2 per cent) and Other Services (12.2 per cent).
Speaking about the sectors which are expected to witness lower average hikes this year, Chaudhary said that Cement, hospitality, telecom are likely to see lower average hikes as compared to others. The cement industry will get a salary increment of little lower than 9 per cent. Hospitality is lower in compare to the other sectors but it is higher than last year. Employees of Telecom industry are likely to get an increment of round about 9.7 per cent. They would be lower than in comparison to other sectors, however, they will get higher than last year, he added.
The Partner of Aon India & South Asia further said that some sectors like IT are showing a downward trend in pay hikes. They continue to be in high but they are lower than what they were in two years back and even lower than what they were last year. But some sectors like hospitality, aviation and retails were struggling at 4-5 per cent during COVID or post after COVID. But they have now doubled to 9 per cent this year.
When it comes to the role of the employees, he said that the study revealed that even the executives are getting a hike of 9.1 per cent amongst others.
Speaking about the 2023 projections by the level of management, Chaudhary said that the top/senior management will get an overall hike of 9.3 per cent while the merit and non-merit employees will get 7 and 2.3 per cent respectively. Likewise, the employees who are in the middle management will get an overall hike of 10.2 per cent hike in 2023 while the merit and non-merit middle management employees are expected to get a hike of 7.4 and 2.8 per cent respectively. Likewise, the merit and non-merit employees at the Junior Management level will see a salary hike of 7.8 per cent and 3.3 per cent respectively but for them the overall hike for the level is expected to be 11.1 per cent.
Chaudhary also suggested the following two key points which likely to help an employee get a better hike:
- You have to establish the fact that your skills are critical to the organization and hence that you are not easily dispensable. You are doing something for the organization which is very difficult to get in the market. That will certainly give you a good increment because the critical talent and skills are in demand in all sectors.
- Your own ability to do different roles. Agility and flexibility to do more than one role are important. Multiple skills will help you negotiate better.
Watch Roopank Chaudhary’s interview with TOI Business Bytes on how much salary hike in 2023: (Video Credit: Times Of India)
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