Indian employees likely to get 15-30% salary hike amid layoff season

Creating jobs for millions of young people entering the job market remain the biggest challenge for Prime Minister Narendra Modi's administration ahead of national elections in 2024.

New Delhi, Jan 17: Companies in India are projected to dole out an average salary hike of 15 to 30 per cent more, in Asia's biggest pay increase this year, as they look for key talent and niche skills, says a report.

On average, pay in the South Asian nation will increase by 9.8% in 2023 after a 9.4% bump last year, according to a survey by Korn Ferry.

The news comes as a major relief to Indians amid layoff season that has gripped the world.

According to the report, High-tech industries, life sciences and healthcare lead the pack with jumps of more than 10%.

The Indian economy is more resilient today that what it was 10 years back. While it is also one of the most populous - with millions entering the workforce each year, the overall unemployment rate remains a concern.

More Findings:

Korn Ferry, which surveyed 818 companies in India employing more than a combined 800,000 staff, found 61% of organisations are providing retention payments to key individuals.

"The 9.8% rise for India compares with 3.5% in Australia, 5.5% China, 3.6% Hong Kong, 7% Indonesia, 4.5% Korea, 5% Malaysia, 3.8% New Zealand, 5.5% Philippines, 4% Singapore, 5% Thailand, 8% Vietnam," according to a Bloomberg report.

According to the Centre for Monitoring Indian Economy (CMIE), India's unemployment rate in December increased to a 16-month high at 8.30 percent from 8.00 percent in December.

The CMIE data further showed that the urban unemployment rate rose to 10.09 percent in December from 8.96 percent in the previous month, while the rural unemployment rate slipped to 7.44 percent from 7.55 percent.

Containing high inflation and creating jobs for millions of young people entering the job market remain the biggest challenge for NDA government ahead of national elections in 2024.