Average salary in India is expected to increase by 10.2 per cent in 2023, mainly driven by e-commerce, professional services, and information technology, a report said on Tuesday (March 21).
The average salaries in India will increase by 10.2 per cent in 2023, lower in comparison to 10.4 per cent (actuals) in 2022, but still in double digits, according to a Future of Pay 2023 report by professional services organization EY.
“The projected salary increases for 2023 are slightly lower than the actual increases for 2022 across all job levels, except for blue-collar workers, who are projected to have a slightly larger decrease in compensation in 2023,” it stated.
Top three sectors tied to technology
The top three sectors with the biggest projected salary increases are tied to technology, said the report. E-commerce has the highest projected salary growth at 12.5 per cent, followed by professional services at 11.9 per cent, and IT at 10.8 per cent, it added.
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The data presented in EY Future of Pay report is based on a survey with over 150 leaders or Chief Human Resource Officers (CHROs) between December 2022 to February 2023 from mid to large-scale organisations across India Inc.
Further, the report revealed that key skills and roles continued to be in demand across sectors and command premium in the market.
Competition for top talent intensifying across industries
“The current talent market in India is dynamic and evolving rapidly, shaped by a combination of global economic trends, technological advancements, and changing workforce expectations. As the Indian economy continues to grow, competition for top talent is intensifying across various industries,” the report said.
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“Top talent with critical skills and high-performance history command compensation premiums ranging from 1.7 to 2X of average talent,” EY India Partner and Total Rewards Practice Leader, Workforce Advisory Services, Abhishek Sen said.
Emerging sectors for jobs in India in 2023
Some of the most promising emerging sectors for jobs in India in 2023 include renewable energy, e-commerce, digital services, healthcare, telecommunications, educational services, retail and logistics, and financial technology, said the report.
These sectors are anticipated to keep growing and provide a wide range of employment options for qualified employees, it said.
Premium for high-in-demand skills
Over 48 per cent organisations offer a premium for the skills which are high in demand, the report has revealed.
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The average premium is up to 1.9 times for skills that are high in demand as compared to basic skills, it stated. Moreover, pay hikes offered to average compared to high-performing talent operate at a ratio of 1:1.8 as an average across sectors, the report added.
(With agency inputs)