Indians Will Get Only 6.4% Salary Hike In 2021; But 37% Firms Optimistic About Business Growth
As per a recent report, India Inc is very likely to offer an average hike of 6.4% in the salaries of employees during the 2021 appraisal season.
The report also states that top performers will receive 20.6% increment.
6.4% Increase In Salaries To Be Given In 2021; These Sectors To Give Highest Increments
According to Willis Towers Watson’s latest Salary Budget Planning Survey report, India Inc. will offer an average increment of 6.4% in the salaries of the employees in the appraisal season of 2021. This increment will be more than the 5.9% average salary increase that was offered by Indian companies in 2020.
The report states that high-tech and consumer product companies will probably offer the biggest pay hikes and business process outsourcing (BPO) will be offering the lowest increment.
“High-tech, pharmaceuticals and consumer products and retail project a median salary increase of around 8%, which is more than the general industry projection. The financial services and manufacturing sector projects a 7% increase in 2021, while BPO is at 6%.”
Additionally, the energy sector is also expected to see the lowest increase of 4.6%.
No Improvement In Hiring Situation Despite Improvement In Business Environment
The report also states that despite an improvement in the business environment and sentiment, hiring people has not comparatively improved.
37% of the Surveyed companies in India have Projected a positive business revenue outlook for the next 12 months. This is an increase from 18% that was in the third quarter of 2020.
Only 10% of the organisations in India are planning to employ new people, down from 14% of last quarter.
Rajul Mathur, consulting head, talent and rewards, Willis Towers Watson India, said, “With compensation budgets lower than previous years, companies are likely to prioritize allocation towards protecting critical and high skilled talent. Through 2021, we can continue to expect greater emphasis on pay for performance and pay linked to business output.”
The companies in India are attempting to revive themselves after the COVID-19 outbreak and its repercussions which has resulted in a major crisis.
Companies in Indonesia are offering 6.5% pay hike, the report states. This is followed by China (6%,) Philippines (5%), Singapore (3.5%) and Hong Kong (3%)