In FY22 salaries for corporate employees in India went up by 10.6 per cent, which was the highest hike in a decade, and they are slated to receive a 10.4 per cent raise in FY 23. This could also be a move to retain talent, at a time when attrition has gone up by 14 per cent in two years, as an effect of the great resignation. As India Inc’s employees seek more opportunities even as most Indians struggle to find employment, the country is expected to witness higher salary hikes globally at 4.6 per cent.
Sri Lanka and Pakistan hit by economic crisis
Salary increases will be subdued across the world due to inflation this year according to an ECA survey for salary trends. Of the 37 per cent countries that will deliver a real-term wage increase, the US will only see a 1 per cent hike due to inflation. In case of UK, real-term salaries went down by 5.6 per cent, despite a hike of 3.5 per cent. Sri Lanka and Pakistan were at the bottom of the table because of an economic crisis aggravated by global headwinds.
Vietnam replaced China as India’s rival
As China has fallen to the third position with a 3.8 per cent real term salary hike forecast for this fiscal year, Vietnam has emerged as India’s closest rival with a 4 per cent increase. The data came from 360 multinational firms in 68 countries, while close to 90 per cent of India’s workforce comes under the informal sector. Earlier this year, Google contractors in the country had complained about a recruitment agency underpaying them, while teachers and lawyers in the country have shared similar concerns.
IT sector hikes subdued?
According to staffing firm Xpheno, the salary hikes and bonuses in the IT sector have also remained subdued this year. At the same time workers taking up side gigs for earning extra, have been fired by firms such as Wipro and Infosys, which found their actions unethical.
