Average pay hike at 6.1% this year; likely to be 7.3% in 2021: Survey


PTI, Nov 4, 2020, 3:31 PM IST

Credit: iStockPhoto

New Delhi: Companies in India doled out an average salary increase of 6.1 per cent this year, the lowest in more than a decade, amid the coronavirus-induced economic slowdown but are expected to give a pay hike of 7.3 per cent in 2021, says a survey.

The survey by leading global professional services firm Aon plc on Wednesday showed organisations in the country have shown tremendous resilience despite the Covid-19 challenges and are betting on a recovery. As many as 87 per cent companies plan to give salary increases in 2021 compared to 71 per cent in 2020.

According to the survey, companies in India gave an average pay increase of 6.1 per cent during 2020, the lowest since 2009 when the average was 6.3 per cent.

The latest Salary Trends Survey in India also noted that companies in India will give an average pay hike of 7.3 per cent in 2021.

As per the findings based on an analysis of data across 1,050 companies from more than 20 industries, as of September-October 2020, 87 per cent of surveyed companies said they intend to pay out salary increases in 2021 and 61 per cent of these organisations plan to offer increases between 5 per cent and 10 per cent.

In 2020, 71 per cent of companies provided salary increases and of this group, only 45 per cent gave hikes in the range of 5 to 10 per cent.

“This is a special year — business leaders are putting investments in their employees and clients ahead of shareholder return. Despite the gravity of the Covid-19 pandemic in India and its deep impact on the economy, organisations in India have shown tremendous resilience and a mature view on talent,” said Nitin Sethi, a partner at Aon and CEO of the firm’s Performance and Rewards Solutions practice in India.

The survey also said that two-third of the companies either aim to provide similar or higher increments in 2021 compared to the increments offered in 2020.

Further, Sethi said “business and HR leaders made hard decisions in second and third quarters of 2020 and are now betting on the green shoots of improving consumer demand. They see the need to invest in talent as a critical part of their recovery and growth prospects”.

The industries looking to provide the highest salary increases are High Technology (Hi Tech), Information Technology (IT), IT Enabled Services (ITeS), Life Sciences, E-commerce, Chemicals and Professional Services.

Meanwhile, companies in the Hospitality, Retail and Real Estate/ Infrastructure industries, which had given very low increases in 2020, are projecting a higher increase for 2021, but still trail most other sectors.

“The impact of Covid-19 has been varied on different sectors and organisations. We see high differentials in salary increases — both intra and inter-industry.

“The difference between industries with the highest increase to lowest increase hits 7.2 per cent points as compared to mere 2.4 per cent points in 2019,” said Navneet Rattan, Director at Aon in India’s Performance and Rewards Solutions practice.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Yuvraj Singh, Hazel Keech blessed with baby boy

Modi wears Uttarakhand cap, Manipur stole this R-Day

Telugu star Chiranjeevi tests positive for COVID-19

Jal Shakti ministry tableau depicts challenges of water supply at altitudes of over 13,000 ft

Masked, vaccinated, socially distanced – only 5,000 people attend R-Day parade

Gold worth Rs 29.14 lakh seized at MIA

PM Modi pays homage at war memorial


Related Articles More

RBI-monitored takeover process complete: Crisis-hit PMC Bank branches to operate as USFBL branches

Consumer goods giant Unilever cutting 1,500 management jobs

FRL independent directors turn down Amazon’s bailout offer

Go First airline’s Twitter handle hacked

Bengaluru airport processes record cargo throughput for calendar year 2021

MUST WATCH

Hon’ble President Ram Nath Kovind’s Message on the eve of Republic Day 2022

The bridegroom paid homage to Kafidore Siddhartha Hegde on the wedding day

Siddaramiah Reject peta of fan at Badami

NEWS BULLETIN 25-01-2022

Dotihal Road Problem


Latest Additions

Yuvraj Singh, Hazel Keech blessed with baby boy

Despite COVID-19, India displays tremendous resilience, capability: Kerala Guv

Truly special ambassadors of strong relations between our nations: PM Modi writes to Gayle, Rhodes on Republic Day

Rich folk art, handicraft shine in Karnataka’s R-Day tableau

Modi wears Uttarakhand cap, Manipur stole this R-Day

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.