As per a study by Aon, this year employees of India Inc are likely to see a maximum hike in salary for 2020 of 9.1%, which shall be the lowest in the decade's time. Nonetheless, when we compare it to its last salary hike for 2019, it shall not be steep wherein it was of a maximum of 9.3%. Since 2011, the growth in salary hike has been receding, wherein the average salary hike was reported at 12.6%.
Further taking note of the economic slowdown and weak consumer sentiment, the data is all the more cautionary said Tzeitel Fernandes, Partner, Rewards Solutions at Aon.
Inflation and Hunt for Key Resource to Still Maintain Salary At Higher End
Herein where on an average across industries there shall be no salary hike beyond 9.1%, it is seen that some 39% of the organizations have considered providing double-digit hikes and others would offer it in the range of 8-10%. Also, as there is intense competition for key resource and inflation is also scaling, there is an optimistic outlook on salary which is likely to go on a higher side.
E-commerce And Professional Services Firm To Offer An Average Salary Hike of 10% in 2020
It is expected that online marketplace and professional services company will dole out the highest average salary hike of up to 10% in 2020. Then will follow pharma or medical companies that will offer an hike of 9.9%. And amid the slowdown, employees in the auto space shall be the worst hit with a salary hike of just 8.3%.