Winning Bizness Desk

Mumbai. 57% of employees expect a salary increase of more than 12% next year despite headwinds such as global economic slowdown, inflation, lack of startup investment, layoffs in the tech sector and recession fears. According to a study conducted by CIEL HR Services, 23 per cent employees believe that there could be an increase of 8-12 per cent while 11 per cent believe that there could be a hike of four to five per cent. However, 8.3 per cent believe that their salary can increase only by 4 per cent. Significantly, the IT sector has seen higher salary hikes in the past due to high demand and competition among companies to attract and retain talent. This year, the situation at the ground level has changed, yet the employees are hopeful about the increment.

When activities increased, expectations increased

Sectors like manufacturing, engineering, infrastructure and energy took a conservative approach in salary hikes last time. The salary of most of the employees was increased by less than 10 per cent. As the activities have started increasing, the employees working in these sectors are now expecting more growth. The study noted that macroeconomic factors are yet to reverse with retrenchment and uncertainty in the global economy. Nevertheless, some areas in India are witnessing good recovery and positive sentiment. The study was based on 1,800 employees across nine industries. In this, 62% said, last year salary increase was not much. Their return to work has added to their expenses due to the rising cost of living.

Growth in organized sector employment

According to another report, there has been a spurt in organized sector employment in the country. Especially in the second tier cities, it has a higher edge. In 2022, there has been a doubling of employment in this sector. According to the report, metros such as Delhi, National Capital Region (NCR), Mumbai and Bangalore, Pune, Ahmedabad and Jaipur have also seen a spurt in hiring by small industries.