Double-digit pay hikes on the cards: Survey

Employees can expect a double-digit increment this year after an almost dry run in pandemic-hit 2020.

According to the first phase of the 2021 Workforce and Increment Trends Survey by Deloitte Touche Tohmatsu India LLP, 20% of the participating companies plan to give a double-digit increment this year. The survey said healthcare and information technology (IT) sectors are expected to give the highest hikes.

The average increment would be around 7.5% this year, at least two surveys, including the one by Deloitte, have pointed out that.

Two surveys

The India-specific Deloitte survey, in which 400 organisations across seven sectors and 25 sub-sectors, participated, shows that a hike of 7.3% is expected this year. It said the average increment would be 4.4% higher than 2020.

As much as 92% of the 400 companies surveyed plan to give an increment in 2021.

“The increase in increment budgets is in line with the faster-than-expected economic recovery, revival in business and consumer confidence, and early signs of improving corporate profitability,” the survey started in December 2020 read.

Around 30% of the companies that did not roll out increments in 2020 plan to compensate employees this year through higher increments —maybe in double digits — and/or bonuses, it added.

Average hike of 7.9%

Another survey by global organisational consulting firm Korn Ferry said India Inc was likely to give an average salary hike of 7.9% to employees in 2021 against an average increment of 6.9% in 2020.

Korn Ferry’s ‘Salary Increment & Rewards Survey Trends’ report said that 78% of the participating organisations planned to give hikes in 2021.

Among the most notable hikes announced this year, Cognizant offered performance-based salary increments to around 1,60,000 employees globally in March. The quantum of the salary hikes, however, was not disclosed.