Salary Hike: Companies can increase salaries by an average of 7.3 percent this year due to faster-than-expected improvement in business activity after the epidemic and increased consumer confidence.
New Delhi: Companies can increase salaries by an average of 7.3 per cent this year due to faster-than-expected improvement in business activity and consumer confidence after the epidemic. A 2021 Phase I survey conducted by Deloitte Touch Tohmatsu India LLP for workforce and wage growth trends found that the average increase in salaries this year will be more than 4.4 percent in 2020, but lower than 8.6 percent in 2019.
Expected to grow 7.3 percent
This year, 92 percent of the companies surveyed said that salary increases. Last year, only 60 percent said so. The survey began in December 2020 and involved around 400 companies from seven regions and 25 sub-sectors. The survey said that average wage growth in India is expected to be 7.3 percent, which is higher than 4.4 percent in 2020.
Companies have increased their budget for wage increases due to faster than expected improvement in economic activity, increase in consumer confidence and better margins. According to the results, 20 percent of the companies have planned double-digit salary increase this year, while in 2020 this figure was only 12 percent. According to the survey, one-third of the companies that did not increase the salary last year, are preparing to compensate them in the form of higher increase or bonus this year.