The latest Deloitte’s Workforce and Increment Trends 2021 survey has addressed salary increment by industry, bonus or variable pay plans, return to work strategy, and the employee attrition rate in India. More than 450 organizations across seven sectors and 24 sub-sectors have participated in the survey.
Interestingly, the average salary hike in India is estimated to be 8.6% in 2022, reflecting a recovering economy and rising confidence.
As soon as the Covid-19 pandemic was declared in India in March 2020, Indians were forced to close their offline businesses, such as factories, offices, restaurants, shops, etc., resulting in massive losses. The country’s economy has also reached a new low. As a result, in 2020, only 60% of companies were able to offer pay hikes, at an average of just 4.4%.
However, Indians have gradually dealt with the situation and returned to work, albeit from home. Companies adopt the new work-from-home culture. As a result, the average salary increment for employees has risen. In 2021, approximately 92 percent of companies gave an increment, at an average of 8%.
Salary Hike In India 2022: IT Is The Most Lucrative
The average salary increment for 2022 seems to be quite satisfying as it would reach the pre-pandemic levels of 2019. As per the findings, about 25 percent of companies have projected a double-digit increment for 2022.
Interestingly, the Information Technology (IT) sector is expected to offer the highest pay hike in 2022, followed by the Life Sciences sector.
India’s IT sector is one of the fastest-growing sectors in the world, with companies like TCS, Infosys, Accenture, Wipro, Reliance, and unicorn startups like Paytm, Byju’s, Flipkart, etc. Employees in the IT industry can expect double-digit increments in 2022.
In keeping with their business dynamics, some digital/e-commerce companies expect to offer some of the highest increments, while retail, hotel, restaurants, infrastructure, and real estate companies will continue offering some of the lowest increments. It is also encouraging to see how most companies are extending increments in 2021 even in sectors that have not fully recovered yet.
However, these pay hikes are not for all employees. The companies will continue to use employees’ skills and performance as a key for determining increments. The top performers can expect about 1.8 times the increments given to average performers.
The variable pay plans include bonuses, team awards, initiatives, and many more. Almost 12% of companies have updated their variable pay plans in 2021.
Food for Thought
Most Indian organizations are now considering expanding their talent pool, with the majority opting for work-from-home opportunities. Only 40% of organizations have worked on their “return to office” strategy. However, companies are also in no mood to compromise with the productivity of their remote workers. According to Nasscom, a whopping 30 lakh jobs in Indian IT firms would be slashed by 2022. Therefore, the coming 2022 year could be a terrific year for employees who continue to polish their skills but it could be a disaster for low-skilled employees.