Salary growth falls to 9% in FY23 led by agri, auto, BFSI sectors: Report

Job market experienced slower salary growth in 2022-23, as overall increments decreased to 9% from 10% in previous financial year due to agri, agrochem, auto, BFSI sectors

Job market experienced slower salary growth in 2022-23, as the overall increments decreased to 9 per cent from 10 per cent in the previous financial year mainly due to sectors including agriculture and agrochemicals, automobile and allied, BFSI among others, a report said on Tuesday.

The overall salary growth has dipped in FY23 to 9 per cent compared to 10 per cent in 2021-22, according to staffing company Teamlease Services' 'Jobs and Salary Primer Report' for 2022-2023.

Agriculture and agrochemicals, automobile and allied, banking, financial services and insurance, BPO and IT enabled services, construction and real estate, educational services, fast moving consumer durables, FMCG, hospitality, industrial manufacturing and allied, power and energy, ecommerce and tech start-ups, healthcare and allied industries and retail exhibited less than 9 per cent growth.

The Teamlease Services Jobs and Salary Primer Report FY22, covered 403 employers and 357 unique employees across 9 hub cities and 17 industries.

The report further revealed a range of salary growth between 3.20 per cent and 10.19 per cent across various industries, which is slightly slower compared to the previous year..

However, it found that despite a dip in overall salary growth this year, over 41 per cent of job profiles in various industries have just a 5 per cent pay difference between permanent and temporary roles..

Further, as organisations continued to focus on growth and digital transformation, the demand for sales and IT roles has remained quite high, it noted.

Bangalore has an impressive growth rate of 7.79 per cent compared to last year, the report stated..

On the contrary, the BFSI segment witnessed a sharp decline in average salaries in FY23, after two years of steady growth.

However, despite the decrease in pay-outs, the BFSI industry is still creating a diverse range of job profiles that are both hot and longstanding, while also implementing measures to optimise salaries, noted the report.

Due to socio economic factors like global layoffs and funding winter, median salary growth has been slightly lower than last year, yet as the Indian job market continues to evolve, we are seeing an influx of new job roles that have gained momentum from a salary perspective, TeamLease Services Chief Executive Officer - Staffing Kartik Narayan said.

"An interesting aspect to note is that a staggering 41 per cent of all profiles have less than a 5 per cent pay difference between compensation structures for permanent and temporary roles, indicating the growing parity of temporary employment, he added.