India might become highest salary payer in Asia Pacific region next year: Report
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New Delhi: The latest survey report by advisory, broking and solutions company Willis Towers Watson predicts that India will become the highest salary payer in the Asia Pacific next year projecting a salary increase of 9.3 per cent.
This is an increase of 8 per cent compared to 2021, reveals the report.
According to the report, India is followed by Sri Lanka (5.5 per cent), China (6 per cent), Indonesia (6.9 per cent), and Singapore (3.9 per cent) for the highest salary increase for 2021 in the Asia Pacific region.
Pointing towards a much-anticipated economic recovery, a majority (52.2 per cent) of companies in India have projected a positive business revenue outlook for the next 12 months, up from 37 per cent in Q4 2020.
This translates into increased hiring across businesses with 30 per cent of companies planning to hire in the next 12 months. This is almost three times more than last year.
The survey participated by 435 Indian companies this year also shows that a large part of hiring across sectors is likely to happen within critical functions which commands high salary such as engineering (57.5 per cent), information technology (53.4 per cent), technically skilled trades (34.2 per cent), sales (37 per cent) and finance (11.6 per cent).
In addition, attrition rates in India, both voluntary and involuntary, have been lower as compared to other countries in the region. The voluntary attrition rate was 8.9 per cent and the involuntary attrition rate was 3.3 per cent.
According to the report, the high-tech sector is expected to see the highest salary increase at 9.9 per cent in 2022, followed by the consumer products and retail sector at 9.5 per cent, and manufacturing at 9.30 per cent.
On the other hand, the energy sector received the lowest actual salary increase in 2021 at 7.7 per cent. The projected salary of the energy sector in 2022 is also the lowest at 7.9 per cent.
The bi-annual survey was conducted online between May and June 2021. A total of 1,405 companies representing a cross-section of industries from 13 markets in the Asia Pacific.