India Inc.’s Average Salary Hike To Be 9.7% This Year, Says Report
Employees in India are expected to get an average salary hike of 9.7 percent this year, a marginal increase from last year, while top performers will get 15.6 percent hike as companies are focussing on performance and productivity.
HR consultancy firm Aon's annual salary increase survey predicts an average salary hike of 9.7 percent across industries as companies expect a positive economic outlook backed by high economic growth expectation, high domestic demand and low inflation.
Last year, the survey had projected an average salary increase of 9.5 percent.
Continuing the trend, India continues to lead the Asia-Pacific region. Russia is expected to dole out a salary raise of 7.2 percent, South Africa 6.7 percent, Brazil 5.8 percent, the U.S. 3.1 percent, Australia 3 percent and the U.K. 2.9 percent.
The top five industries giving double-digit increase are consumer internet companies, professional services, life sciences, consumer products, automotive/vehicle manufacturing, the report said.
Besides, the differentiation in salary increases further widened this year to 1.9 times between top performer and average performer where the overall the top performer is expected to get an average salary hike of 15.6 percent.
The major point highlighted by the survey is—the reducing difference in pay increases across industries year-on-year.
On attrition, the survey said it has fallen steadily over the years from 18.1 percent in 2014-15 to 15.8 percent for 2018-19. However the involuntary attrition (lay offs) has gone up, prominently in the case of entry level.
Commenting on the impact of new government formation on salary hike, Anandorup Ghose, partner and head of Emerging Markets at Aon, said, "If positivity comes in the economy post election, regardless of how government performs, the positivity will last for the next one year which will lead to higher pay increase for the next year."
Ghosh further told reporters that the double-digit pay increase days are well behind us, as India Inc. shows maturity in managing economic and political cycles.