Country once again reports the highest forecasted salary increase in APAC
Some members of India's workforce will likely see higher salaries and shorter work weeks this year, while employers there are urged to be more flexible.
Willis Towers Watson's (WTW) latest Salary Budget Planning survey is predicting that median salary increases in India will rise by 10% in 2023.
This is an increase from the 9.8% actual increase that took place in 2022, according to WTW, which surveyed over 700 companies in India.
The forecasted increase is the highest across the APAC region. By market, the predicted hikes are:
- Vietnam (8%)
- Indonesia (7%)
- China (6%)
- Hong Kong (4%)
- Singapore (4%)
The findings come as Korn Ferry's latest India Compensation Survey also predicted that India would see the largest salary increase in Asia this year, with wages expected to go up to 9.8%.
Salary increases per sector
According to WTW's survey, the sectors that will see a 10% increase this year include:
- Financial services
- Tech media and gaming
- Pharmaceutical and biotechnology
- Chemicals and retail
On the other hand, the following sectors are expected to be below the industry median:
- Business process outsourcing (9.8%)
- Manufacturing – durable goods (9.5%)
- Manufacturing – non-durable goods (9%)
The salary increases this year are caused by business opportunity and employee retention, according to Rajul Mathur, Consulting Leader, Work and Rewards, WTW India.
"Organisations will need to closely monitor economic indicators and the labour market while being flexible in planning their salary budgets," Mathur said in a media release.
Shorter work weeks for bankers
Meanwhile, bank employees across India will likely see their six-day work weeks shortened to five as negotiations continue between unions and bank associations, according to reports.
The India Times reported that the Indian Banks' Association has agreed in principle to the proposal of a five-day work week with longer hours for workers.
This proposal will remove the alternate Saturdays worked by bank employees, while uniform office hours will last from 9:50 a.m. to 5:30 p.m.
The announcement follows a 2021 decision by the state-owned LIC to shorten six-day work weeks to five, with Saturdays declared as holidays, according to Business Insider.
