Salaries in India are expected to rise by an average of 6.4% in 2021, according to Willis Towers Watson's latest Salary Budget Planning Survey report. This is slightly higher than the 5.9 percent actual average rise in 2020.
The research looks at a variety of work grades in different segments of the market and is meant to provide employers with advice regarding their annual wage forecast for the coming year.
This year, a comparison of expected wage growth across main Asia Pacific economies reveals that Indonesia is projected at 6.5%, China at 6.0%, the Philippines at 5%, Singapore at 3.5% and Hong Kong at 3.0%.
Hiring trends in India
Of the companies surveyed in India, 37% projected a positive outlook for business revenue in the next 12 months, up from 18% in Q3 2020. However, the study shows that only 10% of the organizations in India plan to add a new headcount compared to 14% last quarter.
For 2021, the median pay growth at the executive level is estimated at 7.0%, a small drop from 7.1% in the previous year. A fall from 7.5 percent in 2020 to 7.3 percent in 2021 is projected for Middle Management, Professional and Support Staff.
"High Tech, Pharmaceuticals and Consumer Products & Retail project a median salary increase around 8%, which is more than the General Industry projection. The Financial Services and Manufacturing sector projects a 7% increase in 2021, while the BPO sector is at 6%. The Energy sector is expected to see the lowest increase of 4.6%," the survey said.
Arvind Usretay, Director, Rewards, Willis Towers Watson India said, "All sectors witnessed varying levels of impact due to COVID-19. Some sectors such as hospitality, aviation, travel and tourism were hit harder than the others. Sectors such as Pharma, FMCG, e-commerce and High-tech have experienced growth and this is reflective in their hiring plans and salary budgets for 2021."
In October/November 2020, the study was administered online, generating over 18,000 sets of responses representing over 130 countries worldwide.