Salary Hike In 2020 Is Worst In 25 Years; These Sectors Gave Highest & Lowest Salary Hike
A survey has revealed that India Inc has offered its employees the lowest ever salary increments in 2020. The year has taken quite a fall due to the pandemic and the lockdown imposed nationwide.
Read on to find out the increments offered by sectors to their employees.
Average Salary Hike Stands At 6.1 Percent; IT, Pharma Are Highest Paying Sectors
The survey by Aon Survey, named ‘Salary Trends Survey 2020 – 2021’ reveals that the average salary hike in 2020 stands at 6.1 percent. This is the lowest level ever seen in 25 years of the survey.
The survey also states that the previous lowest average salary hike in India was in 2009 at 6.3 percent, and this was during the global financial crisis. Additionally, the average salary increment by Indian Companies in 2021 has been predicted at 7.3 percent.
The survey states that sectors with the highest salary increase in 2020 are i-tech, IT, pharma, and life sciences, whereas, the sectors that offered the worst performance on salary are hospitality, real estate, engineering services.
29 percent of companies have not offered salary hikes in 2020, whereas, 46% of companies have offered an increment in the range of 5 to 10 percent to their employees. 16 percent of companies offered their employees a salary hike of 10 percent.
As per some reports by LinkedIn, around two thirds, 67% of major companies in India have offered bonuses, variable payouts, and incentives to employees this year. These include PepsiCo, Maruti Suzuki.
Toyota Kirloskar Motor, Accenture, Infosys Are Offering Bonuses?
Toyota Kirloskar Motor has offered its employees bonuses with annual increments despite being among the companies that were affected the worst, whereas, popular logistics company, Shadowfax, has offered quarterly bonuses to its sales team.
Accenture has given pay hikes and bonuses to its employees, as many as 200,000 Indian employees. TCS has also announced a salary increase or its workforce of 453,540 employees from 1st October 2020
Another leading Indian IT company, Infosys, has also announced salary increases and promotions for all levels from 1st January.
Wipro has also announced 100% variable pay linked to business metrics for all employees for the third quarter (October-December) and the fourth quarter (January-March) of the financial year 2020-21.