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After a volatile period of the pandemic, Indian organizations are expected to witness a 9.9 percent salary increase in 2022, compared to 9.3 percent in 2021, a new report showed on Wednesday.

India continues to project the highest salary increases among the BRIC (Brazil, Russia, India, and China) nations in 2022, with Brazil at 5 percent, Russia at 6.1 percent, and China at 6 percent.

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The industries with the highest projected salary increases are e-commerce and venture capital, hi-tech/IT and IT-enabled services (ITeS), and life sciences, according to leading global professional services firm Aon.

However, the Indian organizations also reported the highest attrition figure — 21 percent — in over a decade in 2021.

Salary increases should come as a welcome break for employees amid a volatile period. For employers, it could emerge as a double-edged sword when you combine the rising cost of talent with record-high attrition numbers, – Nitin Sethi, partner, and CEO of Aon’s Human Capital Solutions in India.

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“This trend is fuelled by economic recovery and the need for organizations to invest in new-age capabilities to build a resilient workforce,” he added.

The report analyzed data across 1,500 companies from more than 40 industries.

“Even sectors that struggled during the first wave of the pandemic, such as retail, logistics and quick-service restaurants, have bounced back by focusing on modern trade/digital channels, which is reflected in salary increases of 8 percent and above,” said Roopank Chaudhary, a partner in Aon’s Human Capital Solutions in India.

“However, we do see some potential headwinds due to anticipated high inflationary pressures and the still-prevalent COVID-19 threat.”

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