According to the study, 88% companies said that they intend to increase the salaries in 2021. Survey has projected a 7.7% increase in average salary.
This year the Indian companies are likely to give an average of 7.7% hike in salary to its employees. The India Salary Increase Survey by consulting firm Aon revealed this data. However, there is a clause to it. Before you jump into joy - know that the survey says salary hike this year may not lead to increase in take-home pay.
According to the survey, if organisations choose to pay more in the provident fund (PF) contributions due to the new definition of wage code proposed by the Central government, then the take-home pay may not change at all.
The study, that analysed data across 1,200 companies from more than 20 industries noted that while salary increments indicate strong recovery, the Code of Wages could be a gamechanger.
According to the study, 88% companies said that they intend to increase the salaries in 2021. The survey has projected a 7.7% increase in average salary in the year 2021. This is up from the actual increase of 6.1% in 2020.
"There is a much higher percentage of companies projecting increments in the 5-10% range as compared to 2020," the survey said.
Pointers on what the survey says
Survey gathered responses from 1,200 organisations across 38 industries.
88% of the companies were willing to increase the pay of employees in 2021.
Survey also predicted an average salary hike of 7.7% for employees.
This is higher than the 6.1% average salary hike in 2020.
However, employees who are working in e-commerce, VC-backed companies are likely to get the highest increment at over 10 per cent, followed by IT companies at 9.70%. Moreover, IT companies are likely to give an average increment of 8.8%, followed by the gaming or entertainment industry at 8.10%. Those working in the chemicals industry are also like to get an increment of 8%.
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