As per a report by brokerage and research firm Elara Capital, companies like Coforge, L&T Infotech (LTI) and Persistent Systems (PSYS) hiked salaries in double-digits in FY22. Reportedly, this is the maximum hike that they have given in 4 years.
The same hike trend is been observed among employees of all major IT companies such as Infosys, HCL, TCS and other big IT corporations, and it was seen as a good move considering the pandemic hit stagnant income of the employees and much more relief from the dark clouds of spiking inflation all around.
In FY22, the median wage rise was 2.4x five-year average wage increase for midcap Indian IT companies as acute supply-side strain necessitated roll-out of substantial salary hikes.
As compared to the previous four years, the employee growth has exceeded the median salary growth which implies faster fresher addition (pyramid flattening).
As demand for services such as cloud-computing, digital payment infrastructure, cybersecurity and cryptocurrency transactions surged, employers paid top compensation to lure skilled workers.
Further, Double digit salary hikes are here to stay for at least another year. The Salary Increase Survey report by AON says that Indian companies are expected to boost average salaries by at least 10.4% in 2023, a tad lower than the 10.6% given in 2022 so far.
The average salary hikes in percentage terms for 2022 is highest in India as compared with other big countries, including the USA, the UK and Japan, the report said.
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