Salary Appraisal Growth For Indian Employees Increase By 104% In 2 Years: Expect 9.1% Appraisal In 2022

Increments in India are expected to increase to 9.1% in 2022, as compared to 8% in 2021, as confirmed by a Deloitte report.

According to the 2022 Workforce and Increments Trends Survey by Deloitte Touche Tohmatsu India, almost all organizations are planning to offer increments in 2022. 

Organizations To Give 92% Increments in 2022: Deloitte Survey

The first phase of the survey stated that all organizations gave 92% increments in 2022, as compared to only 60% in 2020. 

As per the report, the projected increment for 2022 is much greater than that in the pre-COVID-19 increment in 2019. During 2020, when the COVID-19 virus was on its peak, the figure was 4.4%.

As per Anandorup Ghose, Partner at DTTILLP, “In 2021, increments were higher, paycuts were reversed, and COVID-19-specific benefits were introduced. However, in 2022, in line with the pick-up in activity, as well as hiring and attrition, companies have surpassed pre-pandemic levels of increments, with a sharp focus on retention of talent through rewards.” 

As per the survey, 34% of organizations will be giving double-digit average increments, which was only 20% in 2021 and 12% in 2020. A double digit increment will be given to employees at junior management on an average.

Which Sectors To Give Highest Increments?

Also, 2022 increments will be greater in major sectors, as compared to 2021 and the pre-pandemic levels in 2019. The report states that life sciences and IT sectors will be giving the highest increments in 2022, whereas, FinTech, IT-product companies, and digital/e-commerce organizations will be giving double-digit increments in 2022.

As per the report, 92% of organizations will be differentiating increments based on the individual performance of employees; top performers will get 1.7 times the increment as compared to average performers.

45% of organizations will offer increments based on their current compensation positioning with respect to the market, whereas, the percentage of employees that will be promoted will increase from 11.7% in 2021 to 12.4% in 2022. The average additional increment of promoted employees will be 7.5% in 2022.

The average attrition rate has increased to 19.7% in 2021, as compared to 15.8% in 2020. The voluntary attrition has also increased by more than 5% between 2020 and 2021.