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.
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.
At all employment levels, the projected wage gains for 2023, according to the report, are lower than the actual income increases for 2022, except blue-collar workers, who are anticipated to see a slightly higher fall in compensation in 2023. The industries with the greatest projected salaries are those associated to technology. The largest predicted income rise will be in e-commerce (12.5%), followed by professional services (11.9%) and information technology (10.8%).
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.
Cloud computing, machine learning, and artificial intelligence (AI), which are in great demand, command premium pay rates of 15% to 20% over those for basic software engineering. A premium of 20% to 25% is charged for analytical talents including risk modelling, data architecture, and business analytics.
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.