Slower Salary Growth Hinders India’s Job Market
India’s job market experienced a slowdown in salary growth during the fiscal year 2022-23, with overall pay increments decreasing to 9% from 10% compared to the previous year. This decline was primarily attributed to sectors such as agriculture and agrochemicals, automobile and allied industries, and BFSI (banking, financial services, and insurance), among others. The findings were reported by Teamlease and published by the Press Trust of India.
The report, titled ‘Jobs and Salary Primer Report’ for 2022-2023, surveyed 403 employers and 357 employees across nine major cities and 17 industries.
Teamlease’s research revealed a range of salary growth between 3.20% and 10.19% across various sectors, indicating a slightly slower pace compared to the previous year.
Kartik Narayan, the Chief Executive Officer of Staffing at TeamLease Services, attributed the modest salary growth to socioeconomic factors such as global layoffs and funding challenges, resulting in a lower median salary growth compared to the previous year.
Despite the dip in overall salary growth, the report highlighted that more than 41% of job profiles in various industries had less than a 5% pay difference between permanent and temporary roles, suggesting an increasing parity in temporary employment.
Kartik Narayan emphasized this point, stating, “An interesting aspect to note is that a staggering 41% of all profiles have less than a 5% pay difference between compensation structures for permanent and temporary roles, indicating the growing parity of temporary employment.”
The report also noted that as organizations continued to prioritize growth and digital transformation, the demand for sales and IT roles remained high. However, the BFSI segment experienced a significant decline in average salaries in FY23, following two years of steady growth.