Expect 9.4% wage hike in 2022; technology, e-commerce, IT services may see increment: Survey

Even though the COVID-19 second wave impacted the country severely, Indian organisations have shown tenacity. According to a study, wage increases are expected to rise from an average of 8.8 per cent this year to an anticipated 9.4 per cent in 2022. According to Aon's 26th Annual Pay Increase Survey, issued on Tuesday, most businesses are enthusiastic about 2022, with 98.9 per cent of employers planning to grant salary increases in 2022, up from 97.5 per cent in 2021.

Positive mood prevails across most industries, and India Inc is firmly on the mend, with most businesses forecasting wage increases returning to FY 2019 levels by FY 2022. According to the report, the pandemic has hastened organisations' digital journeys, resulting in an unprecedented fight for digital talent in the near term and driving up pay increase budgets and attrition figures across industries.

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Technology, e-commerce, and IT-enabled services are the top three industries in India, with the most significant predicted wage increases for 2022.  "Sectors such as Hi-Tech/Information Technology, E-Commerce, and Professional Services have forecast higher than 10 per cent growth," according to the research, which analysed data from 1,300 firms in 39 industries.

The industries with the lowest anticipated wage increases for 2022 are hospitality, engineering services, and energy. While wage increases suggest a solid rebound, attrition has risen to 20 per cent, driven by buoyancy and demand, indicating a fresh fight for talent.

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