India Inc set to see 9.8% salary hike in 2023
Contents News/Article Date: 16th January 2023
Relating to which Act: The Indian Constitution grants the Central and state governments the powers to enact laws to protect the employees and foster a professional work environment. Based on the industry, nature of the work, number of employees in the company, location, and more, there are various legislations like the Industrial Disputes Act 1947 (ID Act), Factories Act 1948 (Factories Act), and Shops and Establishment Acts in relevant states (S&E Act).
Applicable to which State: Acts and Rules are applicable to all States
Type: People Matters News Report
Pertains to: Establishments and Employees in all types of Organizations running businesses for profit or nonprofit
Relevance of this news: Karma Management Global Consulting Solutions Pvt. Ltd has been in the business of Payroll, Outsourcing, and Regulatory Compliances from its inception in 2004 and since then, has brought in a lot of efficiencies and technological upgradations with experts on its role, to ease the hassles of Payroll Processing, Temp Staffing On-boarding Management, Regulatory and Payroll compliances by providing customized solutions to all its elite clients.
Now Karma Global is also fully into labour compliance for nearly 18 years and is helping both establishments and workers for the fulfillment of obligations as per the laws of the land. It has over 200 staff, both direct and indirect on its rolls and operates on Pan India basis. Recently, it has diversified into foreign shores as well, into countries like the US, UK, UAE, Canada, and South East Asia for handling payroll, outsourcing, recruitment, compliance, and governance.
Karma Global handles the obligations of all provisions contained in the labour acts and rules. Employees are entitled to several benefits under the Employment Act, including annual paid leave, sick leave, maternity benefits, paid public holidays, etc. Employers must ensure that they meet all of the Act’s standards and that the contract conditions reflect this.
Businesses must comply with the following requirements of the Act in particular:
- Minimum wage
- Maternity benefits
- Revision of wages
- Safer work environment
- Adaptive work culture
- Issuance of employment contracts
- Social contributions
- Health care and insurance
- Holidays and annual leave
- Termination, severance pay, grievance handling, redressal
and in this instance, India Inc. is likely to see an average salary increment of 9.8% in 2023, according to Korn Ferry’s latest India Compensation Survey.
The survey, which covered 818 organizations with more than 800,000 incumbents across sectors offering insights on 15 industries, 75 sub-sectors, 75 job functions, and 1345 unique jobs, showed growth across sectors which translated to a marginally increased forecast of 9.8% viz-a-viz 9.4% in 2022.
Subject: India Inc set to see 9.8% salary hike in 2023
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India Inc set to see 9.8% salary hike in 2023
Source: People matters
Ahmedabad and Pune are among Tier 2 cities that are giving tough competition to Tier 1 cities in fixed annual cash received by employees, reveals Korn Ferry India Compensation Survey.
India Inc. is likely to see an average salary increment of 9.8% in 2023, according to Korn Ferry’s latest India Compensation Survey.
The survey, which covered 818 organizations with more than 800,000 incumbents across sectors offering insights on 15 industries, 75 sub-sectors, 75 job functions, and 1345 unique jobs, showed growth across sectors which translated to a marginally increased forecast of 9.8% viz-a-viz 9.4% in 2022.
While the pandemic brought down the increment drastically to 6.8% in 2020, the current growth trend reflects the resilience and ability of leaders and employees to reimagine and rebuild for a sustainable future.
While the pandemic brought down the increment drastically to 6.8% in 2020, the current growth trend reflects the resilience and ability of leaders and employees to reimagine and rebuild for a sustainable future.
The survey reflects salary increase projections across sectors:
Services – 9.8%
Construction and Building Material – 9.1%
Life Sciences and Health Care – 10.2 %
Utilities – 8%
Automotive – 9.0%
Chemical – 9.6%
Consumer Goods – 9.8%
Retail – 9.0%
High Technology – 10.4%
Industrial goods – 9.9%
Fixed annual cash in compensation structure (Total Cost to Company) continues to comprise the biggest proportion of salary of local employees in the Indian market. As employees move up the ladder, the compensation structure allows for more benefits and variable pay while base salary and allowances fall.
Employees in Tier 1 cities continue to receive higher compensation in India when compared with Tier 2 and Tier 3 cities.
However, with the hybrid model and remote work developing into an accepted norm, we are seeing a shift towards work becoming location agnostic, aiding Tier 2 cities such as Ahmedabad and Pune in giving competition to tier 1 cities in fixed annual cash received by employees.
“Although recession and economic slowdown are being discussed across the globe, there is optimism about the Indian economy with a projected GDP growth of 6% upwards. While the macroeconomic outlook is positive, there are new and increasing pressures on businesses: changing customer preferences, digital transformation, increased collaboration, and more. To this effect, organizations are focused on retaining critical and key talent through various talent management initiatives and formal retention and compensation plans,” said Navnit Singh, Chairman and Regional Managing Director, of Korn Ferry.
Singh added that to stay ahead, most businesses will need to transform their workforce to meet these demands. “Also, with 60% of the organizations in our survey indicating that they have adopted some kind of a hybrid model, it is prudent to say that the world of work is changing fast—not only the work organizations do, but how they do it.”
In alignment with India’s focus on accelerated digital capability building, the survey has projected substantial increments in life sciences and healthcare, and high technology sectors at 10.2% and 10.4% respectively.