According to a survey, Indian companies are expected to give an average of 7.3% salary increment to its employees.
Last year, due to the COVID-19 pandemic, Salaried Class people in the country did not receive their annual increment. However, this year there is some good news for them. According to a survey, Indian companies are expected to give an average of 7.3% salary increment to its employees. The survey says that due to better economic recovery than expected, increasing business and consumer demand, companies are thinking of passing on the benefits to its employees.
Salary to increase more than last year
The survey conducted by Deloitte Touche Tohmatsu India LLP (DTTILLP) states that the average increment this year will be higher than the 4.4% of 2020, but will be less than the 8.6% salary increment of 2019. 92% of companies who participated in this survey said that they will give increments to their employees this year, while 60% companies had promised salary increments last year. Going by this, year 2021 can be very good for the employees.
400 organizations part of the survey
The survey started in December 2020, in which 400 organizations spread over 7 sectors and 25 sub-sectors were included. According to the survey, companies in India will increase the average salary this year by 7.3% compared to 4.4% last year. This is lower than the 8.6% salary increment made in 2019.
20% companies to give double-digit increments
The survey says that after the COVID-19 pandemic, companies are looking at the possibility of increasing their profits due to better economic recovery than expected, business revival and consumer confidence. According to the survey, this year 20% of companies are going to increase their employees' salaries in double-digit, while last year only 12% companies did so. In 2020, one-third of the 60% of companies who had given increment, increased the salary of their off-cycle employees.
These sectors will see the biggest salary increase
According to the survey, out of the companies which did not give salary increments in 2020, only 30% will compensate their employees through increments or bonuses for last year. According to the survey, Life Science and information technology (IT) sectors will give the highest salary increments.
These sectors will see lowest increment
The manufacturing and service sectors will see the least increase in salary. Life science will be the only sector that will give a hike equal to the salary increment of 2019. The remaining sectors will see lesser salary increment in 2021 in comparison to 2019. Only e-commerce and digital sector companies will give their employees double-digit salary increment in 2021. Hospitality, real estate, infrastructure, renewable energy companies will give the lowest increment.
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