The time for appraisal is about to come. And this time is the happiest time for the employees, because nothing gives them more happiness than a good increase in salary.
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Appraisal The time is about to come. And this time is the happiest time for the employees, because nothing gives them more happiness than a good increase in salary. However, this year Salary Recession can have an impact on growth. In the current financial year, the increase in salary may be less than before. According to an Economic Times report, salary hike estimates for FY2023 will be lower for companies that follow the January-December performance cycle.
Situation will be better in some sectors
However, all employees need not despair. Because the rate of decrease in salary will not be same in all sectors. The tourism, travel, hospitality, consumer/FMCG and power sectors have outperformed others. According to the report, in the data shared by Deloitte India, it has been found that the salary hike in all these sectors will be better than others. Some better growth will also be seen in the service sector, as they have benefited from the opening of the economy. This data has been taken from about 300 companies, most of which are multinational companies.
According to the report, information technology product companies will grow by 11.3 percent during FY 2022 to FY 2023. Earlier in the financial year 2022, there was an increase of 12 percent in this sector.
Employees of travel and tourism sector will get benefit
At the same time, the growth in the IT services sector will be 8.8 percent, which will be 9.4 percent in FY2022. The growth in third party IT services will be 7.8 percent in the financial year. It was 8.7 percent in FY2022. Whereas, the increase in salary in captive services will fall from 10.5 per cent in FY2022 to 10.4 per cent in FY2023.
The appreciation in the services sector is expected to be 9.4 per cent in FY2023. It was 8.9 percent in FY2022. Salary increase in the hospitality, travel and tourism sector is expected to be 9.6 per cent in this financial year. It was 8.5 percent in FY2022.
In the consumer or fast moving consumer goods (FMCG) segment, the growth will be 9.8 per cent. This is higher than 9 per cent in the previous financial year. At the same time, the rate of appraisal in the manufacturing sector is estimated to fall from 10.2 per cent in FY2022 to 9.8 per cent in the current year.