India Inc may give 7.3% pay hikes this year

NEW DELHI: Companies in India are expected to dole out an average increment of 7.3% to employees this year amid faster-than-expected economic recovery and revival in business and consumer confidence, according to a survey.

The first phase of the 2021 Workforce and Increment Trends Survey by Deloitte Touche Tohmatsu India LLP (DTTILLP) also said the average increment this year will be higher than 4.4% seen in 2020 but lower than 8.6% given by companies in 2019.

As many as 92% companies that participated in the survey plan to give an increment in 2021 compared to only 60% last year.

The survey, launched in December 2020 as a B2B India-specific survey, covered around 400 organisations spread across seven sectors and 25 sub-sectors.

"Average increment for companies in India is expected to go up to 7.3% from 4.4% in 2020. This 7.3% projected increment is lower than the 8.6% average increment in 2019.

"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," it said.

As per the findings, 20% companies plan to give a double-digit increment this year compared to only 12% in 2020.