Artificial Intelligence (AI), Machine Learning (ML) and cloud computing are in high demand and these skills command a premium of 15-20 per cent over basic software engineering compensation levels.
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New Delhi: The average salary hike of employees working in India is expected to be 10.2 per cent in 2023, as per a survey report titled “Future of Pay” by EY. Even though the average salary hike is slightly lower than the actual increase of 10.4 per cent in FY 2021-22, but still in double digits.
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As per the report, for 2023, the projected salary increases are lower than the actual increases for 2022 across all job levels, except for blue-collar workers, who are expected to receive a slightly larger decrease in compensation in 2023. Technology-related sectors are the most promising ones with the highest forecasted salary. E-commerce is expected to have the highest salary growth at 12.5 per cent, followed by professional services at 11.9 per cent and information technology at 10.8 per cent.
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Also, the average variable payout as a percentage of total compensation was 15.6 per cent in 2022 in comparison to 14 per cent in 2021. When it comes to variable payouts, financial institutions lead the category with a variable payout percentage of 25.5 per cent, indicating a higher emphasis on performance-based incentives. And telecommunications industry had an overall variable payout percentage of 13.7 per cent, which is relatively lower compared to other sectors.
HIGH DEMAND SKILLS: ARTIFICIAL INTELLIGENCE, MACHINE LEARNING & CLOUD COMPUTING
Renewable energy, e-commerce, digital services, healthcare, telecommunications, educational services, retail and logistics and financial technology are some of the most promising emerging sectors for jobs in India in 2023 that are anticipated to keep growing and provide a wide range of employment options for qualified employees.
Artificial Intelligence (AI), Machine Learning (ML) and cloud computing are in high demand and these skills command a premium of 15-20 per cent over basic software engineering compensation levels. Analytical skills like risk modelling, data architecture, and business analytics command a premium of 20 per cent to 25 per cent.
As per the report, 48 per cent of organizations offer a premium for the skills which are high in demand. The average premium for the skills which are in high demand is about 1.9 times more than that the premium in basic skills. Moreover, pay hikes offered to average vs high-performing talent operate at a ratio of 1:1.8 as an average across sectors.
“As the Indian economy continues to grow, competition for top talent is intensifying across various industries. Top talent with critical skills and high-performance history command compensation premiums ranging from 1.7 to 2X of average talent,” said Abhishek Sen, Partner & Total Rewards Practice Leader, Workforce Advisory Services, EY India.
