Despite the impact of the second pandemic wave, India Inc is expected to give an average salary hike of 9.4 per cent in 2022, according to a survey. While salary increments indicate strong recovery, a 20 per cent attrition highlights a renewed war for talent, according to Aon’s 26th Annual Salary Increase Survey released on Tuesday,

The study analysed data from 1,300 companies in 39 industries.

“The survey found that Indian companies increased salaries by 8.8 per cent on average in 2021. The 2022 projection of an average 9.4 per cent salary increase is a sign of strong economic recovery and improved consumer sentiment,” an Aon statement said.

Nitin Sethi, partner and CEO of Aon’s performance and rewards businesses in India, said, “While 2021 is a year where certain sectors remain under stress due to the Covid-19 pandemic, most businesses have an optimistic view going into 2022 and are projecting higher salary increases. We see positive sentiment across most sectors, high investor confidence with sustained foreign direct investment flowing into the country, and growing consumer demand across most segments.”

High attrition

But more people are also looking out for new jobs.

“High double-digit attrition is the strongest we have seen in more than a decade. The war for talent is back in India, which we anticipate will keep salary increases high,” Sethi added.

According to the survey, the top three sectors with the highest salary increase projected for 2022 for India are technology, e-commerce and IT-enabled services. The sectors with the lowest salary increase projected for 2022 are hospitality, engineering services and energy.

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Roopank Chaudhary, partner in Aon’s human capital business, said, “While pandemic risk in India continues, the business sentiment and salary projections for 2022 tell us that employers are building for growth and are much better prepared than in 2020.”

“Most Indian organizations, across traditional and non-traditional sectors, are making investments in digital capabilities to sustain the growth momentum and disrupt their industries. Employees with digital and technological skills are the most successful in 2021, as we see the highest salary increase for employees with these skills across sectors,” he said, adding that this trend is expected to intensify over time.