The salaries of the employees in India are expected to have a raise by 6.4 per cent on an average basis in 2021, which is marginally higher than the average actual raise of 5.9 per cent from the records of 2020, revealed by the reports from the Willis Towers Watson survey.
An average salary can be expected to have an increase to 6.4 per cent in 2021 which approximately turns out to be 7 per cent rise as per the details from the recent Salary Budget Planning Survey report released by the Willis Tower Watson.
Rajul Mathur, Consulting Head – Talent & Rewards, Willis Towers Watson India said, “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.”
Mathur revealed that with compensation budgets less than the prior years, companies will highly prioritize on allocation towards protecting critical and high skilled talent. Mathur said, “Through 2021, we can continue to expect greater emphasis on pay for performance and pay linked to business output.”
The survey predicted that median salary increase for the executive post for 2021 is planned at 7 per cent with a decline of 0.1 per cent from 2020. Alongside, the middle management, professional and support staff will have a fall from 7.5 per cent (2020) to 7.3 per cent (2021).
The survey was carried out in an online platform in October/November 2020 and acquired over 18,000 sets of responses which extend to more than 130 countries worldwide.
From the Indian companies which have been a part of the survey, 37 per cent of them have a positive business revenue outlook over the forthcoming 12 months which has grown from 18 per cent which was in Q3 2020. But, the recruitment graph is also increasing. The study further iterates about 10 per cent of the organizations want to add a fresh count contrast to 14 per cent in the last quarter.
Arvind Usretay, Director, Rewards, Willis Towers Watson India said, “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, e-commerce and high-tech have experienced growth and this is reflective in their hiring plans and salary budgets for 2021.”
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