In 2021, India to Witness a Rise of 6.4 Percent in Average Salary: Report

The Willis Towers Watson’s reports that the salaries in India are expected to augment by an average of 6.4 percent in 2021 this mark the median increase of about seven percent. This is marginally higher than the average actual increase of 5.9 percent in 2020.

On a comparison of the projected salary rise across key markets in Asia Pacific this year marks that Indonesia is proposed about 6.5 percent, China at 6.0 percent, Philippines at five percent, Singapore at 3.5 percent and Hong Kong at 3.0percent.

While the surveyed Indian companies reveal that, 37percent have planned a positive business revenue outlook for the next 12 months, up from 18 percent in Q3 2020.

However, despite a comparatively optimistic projected business outlook, recruitment is yet to pick up. The study reveals that only 10 percent of the organisations in India intends  to add new headcount as compared to 14 percent of the last quarter.

Rajul Mathur, consulting head – talent & rewards, Willis Towers Watson India states, “As companies in India respond to the economic implications of the Covid-19 crisis, there is an increased optimism on business recovery, but it is yet to translate into the salary increment budget. With compensation budgets lower than previous years, companies are likely to prioritise allocation towards protecting critical and high skilled talent. Through 2021, we can continue to expect greater emphasis on pay for performance and pay linked to business output.”

He further adds, ”High tech, pharmaceuticals and consumer products & retail project a median salary increase around 8 percent, while the financial services and manufacturing sectors project a seven percent increase in 2021. BPO sector, on the other hand, is at 6percent, while the energy sector is expected to see the lowest increase of 4.6 percent.”

Arvind Usretay, Director, Rewards, Willis Towers Watson India says, “All sectors witnessed varying levels of impact due to Covid-19. Some sectors such as hospitality, aviation, travel and tourism were hit harder than the others. Sectors such as Pharma, FMCG, ecommerce and High-tech have experienced growth and this is reflective in their hiring plans and salary budgets for 2021.”

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