Startup employees in India got 8-12 pc average salary hikes in 2022-23: Report

Bengaluru and Hyderabad emerged as top cities for tech talent availability with a combined share of 72 per cent.

The average salary increments in startups were between 8-12 per cent in 2022-23, according to a report by Elevation Capital. The report titled 'Startup PayPulse Report 2023' released by the early-stage VC fund included data from over 200 startups and around 1,000 candidates.

It suggested that companies deferred salary increments or provided new stock grants in lieu of cash increments for leadership roles. Bengaluru and Hyderabad emerged as top cities for tech talent availability with a combined share of 72 per cent.

Factors like attrition, hiring cost and skill level emerged as necessary considerations for startups, the report said. It also highlighted that those in leadership positions receive ESOPs ranging from 0.2 per cent to 1.5 per cent of the company’s equity, with 50 per cent of the assessed companies having explored offering additional equity grants to leaders as a tool for increments.