Appraisal season 2023 is here! It is the time of the year when many companies in India start their annual appraisal process. Employees, who have worked hard throughout the year, are expecting a decent salary hike to help them face the twin impact of inflation and rising interest rates.
While the actual salary hike of employees will differ from company to company, surveys have shown that employees can expect up to 10% or even more increase in their respective pay cheques.
According to the latest Salary Budget Planning Report by WTW, the average salary hike in India is expected to be around 10% this year. This projection is based on a survey conducted by WTW in Q4 2022.
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The report says that the actual salary hike in 2020 was 7.5% against the projected increase of 10%. However, in 2022 and 2021, the actual salary hikes were higher than projected increments of 9.3% and 7% respectively.
Salary hikes since 2019
|Year||Projected salary increase||Actual salary increase|
The report says that salary increases across markets in Asia Pacific (APAC) are expected to be equal to last year or higher in 2023.
The highest salary increases in 2023 in India are expected in sectors like Financial Services, Tech Media and Gaming, Pharmaceutical & Biotechnology, Chemicals, and Retail sectors. These segments may see the highest salary hike of 10% this year, according to the WTW survey. Salary hikes in manufacturing and business process outsourcing sectors are expected to be below the industry median.
Better salary hike than China, Singapore
Interestingly, the survey of over 700 companies in India found that salary increases in the county continue to be the highest in the APAC region. While a 10% salary hike is projected in India, China may see an increase of 6% only, while salaries in Vietnam, Indonesia, Hong Kong and Singapore may rise by 8%, 7%, 4% and 4% respectively.
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Last month, another survey by Aol plc said that salaries in India may increase by 10.3% in 2023, which will be the highest among major world economies and Asian peers. It further said, that in 2022, actual salaries in India witnessed an increase of 10.6%.