Good news for private employees: Survey shows Indian companies to provide better pay hike in 2021

A survey done by human resource consultancy Aon shows that people working in Indian companies is likely to get a better pay hike in 2021 compared to 2020.

The survey mentioned that at least 87% of companies are planning pay hikes in 2021 compared to 71% in 2020, and  47% of the companies are likely to give over 8% hike compared to 44% in 2020. Meanwhile, 14% of companies may offer zero pay hike in 2021 compared to  29% in 2020.

The survey conducted by AON also stated that the average hike offered by Indian companies in 2020 was 6.1% which was the lowest in the last 14 years.

The survey was conducted for over 1,050 companies across 20 industries.

According to Bloomberg, companies are betting on 'rise in consumer demand' and 'enhanced government spending' to cover the losses to the economy during the COVID-19 pandemic. 

“Despite the gravity of the COVID-19 pandemic in India and its deep impact on the economy, organizations in India have shown tremendous resilience and a mature view on talent," a partner at Aon, Nitin Sethi said to Mint. 

It is quite likely that companies doing business in e-commerce, energy, financial institutions, and pharmaceuticals would offer an average hike of 7.3% to their employees in 2021.