According to Deloitte India’s 2020 Workforce and Increment Trends Survey, almost half of the companies in India are projected to extend less than 8% increments. Moreso, a mere 8% of companies could offer hikes over 10% in 2020.
As per the survey, senior management has more to worry about. These employees will receive two-thirds of the increment given to middle management employees.
This figure drops even further when adjusted to the employee headcount of a company. As per the findings from Deloitte, IT sector aside, the pay hike slumps to 6.8% for all sectors, depending on the company size. This is especially applicable to the manufacturing sector, which has witnessed the sharpest downturn over the past few quarters. This is followed by infrastructure, real estate, shadow banks and telecom.
“The decrease in salary increment budget is in line with the higher margin pressure on companies, economic headwinds, and the need to gradually slow down white-collar pay growth in India to become more globally competitive,” the survey said.
However, IT product and e-commerce employees have little to worry about as they are expected to offer double digit salary hikes. This is because automation and digital skills are high in demand in the job market.
The salary hikes across the digital areas will vary from 14% to 18%, Ajay Shah, VP and head of recruitment at TeamLease Services told Business Insider.
Join India’s largest network of auto industry professionals https://autoretailpro.com/joinus/
Source: Business Insider