Recently, AON conducted a salary hike survey which is its 24th edition. According to this survey, the salary hike may be lower this year. The employees belonging to various firms may get a lower hike than expected.
The projected salary hike by the survey was around 9.1% for the Indian employees in 2020. This is the lowest since 2009 which was around 6.6%. This survey was conducted based on the responses of employees of over 1000 organizations belonging to more than 20 industries.
The good part of this survey is that the salary hike this year is just 20 basis points lower than the 2019’s data which is 9.3%. In 2018, it is 9.5%. Also, the forecasted salary hike is better than in other Asian countries.
More than 30% of the companies participated in the survey are willing to give a double-digit hike, even though the results of the survey are saying otherwise. E-commerce and Professional Service Complaints are the two areas that are going to get higher hikes which is around 10%. Pharma, consumer durables, chemicals, engineering, and manufacturing are going to get a hike of around 9%.
Employees who are working for firms belonging to transportation and logistics are going to get around 7.6% of hike. Hospitality and Restaurants are going to get an 8.2% hike this year. While Real-estate and automobiles are getting a hike of 8.3%.
Tzeitel Fernandes, Partner, Rewards Solutions, Aon said that the pay increase in India is higher than other Asian countries and this is due to the high inflation rate and increase in demand for key talent and skills.