The employees in India are expected to get an average salary hike of 9.7 % this year (2019) whereas top performers will get 15.6 % increase as companies are laying emphasis on performance & productivity.
According to Human Resource consultancy Aon Annual Salary Increase Survey, low attrition & slow hiring keep the overall sentiment unchanged. Aon on 5th February 2019 had released the 23rd edition of its annual Salary Increase Survey in India. It is important to mention that the survey in 2018 had estimated an average salary hike of 9.5 %.
Data from over 1000 companies from more than 20 industries were collected for the survey.
The study underlined that companies are hopeful and are expecting a positive economic outlook supported by high economic growth prospect, high domestic demand & low inflation.
The study also revealed that India continues to lead the Asia-Pacific region. Egypt may provide a salary hike of 12.5 %, Russia may give 7.2 % increase, South Africa 6.7 %, Brazil 5.8 %, America may give 3.1 % hike, Australia 3 % and the UK 2.9 %.
According to the survey, the overall attrition rate in the country had dropped to 15.8 % in 2018 from 18.5 % in the year 2013. On the other hand, the involuntary attrition or layoffs has increased significantly in the case of entry level.
The report further said that consumer internet companies, life sciences, professional services, consumer products, automotive are the top 5 industries that will give double digit increase. The study also disclosed that migration towards Incentive driven pay is limited to the senior as well as top management only.
Anandorup Ghose, Partner at Aon India Consulting while sharing his views on the impact of new government formation on salary hike said, “If positivity comes in the economy after elections, regardless of how the government performs, the positivity will remain for next 1 year that will lead to higher pay hike for the next year.”
He added that the double digit pay hike days are well behind us, as the India Inc. shows maturity in managing economic and political cycles.
