Page 75 - PR COMMUNICATION AGE July - December 2020

India to see marginal hike in average salary

to 6.4% in 2021: Survey

S alaries in India are projected which represent 10.3 per cent of the Of the surveyed companies in India, 37

to rise by an average of 6.4
employees in India.
per cent have projected a positive
business revenue outlook for the next
per cent in 2021, marginally
higher than the average
2020. However, recruitment is yet to
actual increase of 5.9 per cent in 2020, "This implies that for each INR 1 12 months, up from 18 per cent in Q3
allocated to an average performer,
according to a Willis Towers Watson INR 2.35 is allocated to a top pick up.
survey. performer and INR 1.25 is allocated to
an above average performer," the The study showed that only 10 per
According to Willis Towers Watson's survey said. cent of the organisations in India plan
latest Salary Budget Planning Survey to add new headcount compared to 14
report, an average salary increase of The survey further noted that median per cent last quarter.
6.4 per cent in 2021 translates to a salary increase at the executive level
median increase of 7 per cent. for 2021 is projected at 7 per cent, a A sector wise analysis shows that, high
slight decline from 7.1 per cent in the tech, pharmaceuticals and consumer
products and retail, project a median
"As companies in India respond to the previous year.
salary increase around 8 per cent --
economic implications of the COVID-19
more than the general industry
crisis, there is an increased optimism For middle management, professional
on business recovery, but it is yet to and support staff, a decrease from 7.5 projection.
translate into the salary increment per cent in 2020 to 7.3 per cent in
budget," said RajulMathur, Consulting 2021 is projected. The financial services and
Head Talent & Rewards, Willis Towers manufacturing sector projects a 7 per
Watson India. The Salary Budget Planning Report is cent increase in 2021, while the BPO
sector is at 6 per cent. The energy
compiled by Willis Towers Watson's sector is expected to see the lowest
Mathur further said that with Data Services Practice. The survey was increase of 4.6 per cent.
compensation budgets lower than conducted online in October/
previous years, companies are likely to November 2020 and received over
All sectors witnessed varying levels of
prioritise allocation towards protecting 18,000 sets of responses covering over impact due to COVID-19. Some sectors
critical and high skilled talent. 130 countries worldwide. such as hospitality, aviation, travel and
"Through 2021, we can continue to tourism were hit harder than the
expect greater emphasis on pay for A comparison of projected salary others. Sectors such as pharma, FMCG,
performance and pay linked to increases across key markets in Asia e-commerce and high-tech have
business output," Mathur said. Pacific this year shows that Indonesia experienced growth and this is
is projected at 6.5 per cent, China at 6 reflective in their hiring plans and
As per the survey, on average, 20.6 per per cent, Philippines at 5 per cent, salary budgets for 2021," said
cent of the salary increase budget is Singapore at 3.5 per cent and Hong ArvindUsretay, Director, Rewards,
being allocated to top performers, Kong at 3 per cent. Willis Towers Watson India. R

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