With job market growth across various sectors like technology, e-commerce, and a booming startup culture, India’s economy has seen a significant boom over the last few years. A good indicator of this is the steady rise in Indian salaries across industries.

Technology seems to be the backbone of all major growth, as per Indian job market trends. The top three sectors with the most significant forecasted salary increases are tech-based. E-commerce has the highest projected salary growth at 12.5%, followed by professional services at 11.9% and information technology at 10.8%.

This EY India salary survey also predicts that average salaries in India will increase by 10.2% in 2023, which is slightly lower than the actual increase of 10.4% in 2022. The projected salary increases for 2023 are lower than the actual increases for 2022 across all job levels, except for blue-collar workers, who are expected to see a slightly larger decrease in compensation. Regardless, the steady salary growth in India, despite global layoffs is noteworthy.

Here are some key insights from the report -

1. The report emphasised that top talent with a history of high performance and critical skills will continue to garner almost 2x compensation compared to their average peers.
2. Technology continues to be one of the highest-paid fields. Skills in AI, ML and Cloud Computing can command a premium of 15%-20% over baseline software engineering compensation.
3. Fields like risk modeling, data architecture, and other analytical skills command a premium of 20%-25%
4. Some promising sectors that are expected to grow and provide vast opportunities are renewable energy, e-commerce, healthcare, educational services, retail, and financial technology, to name a few.
5. The report also sheds light on the variable pay trends in India, with an average variable payout of 15.6% in 2022 compared to 14% in 2021. The financial institution sector had the highest overall variable payout percentage of 25.5%, indicating a higher emphasis on performance-based incentives.

What does stand out, though, is the emphasis companies are placing on holistic development, wellness, and rewards to retain employees. According to average salary trends in India, companies are projected to move away from giving disproportionate salary hikes and instead want to focus on other perks. Nearly 75% of organisations have wellness programs in place.

Companies seeking to attract and retain top talent offer rewards such as equity-based long-term incentives, customised benefits packages such as student loan repayment assistance, pet insurance, elder care support, employee assistance programs, flexible work, and more.

In conclusion, the EY Future of Pay Report 2023 provides valuable insights into the compensation trends across various sectors in India. It also highlights the current in-demand skills and scopes out upcoming job market trends.