A recent survey has revealed that employees in India may get a 10 per cent hike in salaries in 2019.
The survey carried out by Willis Towers Watson, a London-headquartered risk management and advisory firm, found that the average salary across sectors in India may rise at a rate, highest among major Asia Pacific economies.
Among major economies in the region, the hike in Indonesia is projected at 8.3 per cent, while in China it may remain at 6.9 per cent – followed by the Philippines (at 6 per cent) and Hong Kong and Singapore (both at 4 per cent).
According to the survey, the estimated 10 per cent average hike in 2019 is at par with the actual rate of increase in the previous three calendar years in India.
However, people working in the pharma sector may receive better salary hikes in the coming season at 10.3 per cent. Consumer products and retail sector, high tech and chemical industries will witness a 10 per cent rise.
Sambhav Rakyan, Data Services Practice Leader, Asia Pacific, Willis Towers Watson said, “India continues to show high salary increments compared to other countries in the region and this can be attributed to the steady economic growth, progressive reforms and cautious optimism across sectors”.
The Salary Budget Planning Report noted that multinational companies (MNCs), involved in KPO and/or BPO operations are likely to hike average salaries at a higher rate than Indian firms. While incremental cost on that account for MNCs will be lower due to the appreciation of US dollar, the same will be directly linked to the financial performance of local firms.
Moreover, the performance of employees will be a crucial factor in determining the hike in their pays. Top performers are expected to get 31 per cent higher increment than their peers, who are average performers or underperformers.
Usually, about 42.6 per cent of the total salary increment budget is being allocated to the top or above average performers. On average, 17 per cent of the salary increase budget is being allocated to top performers, who represent 13.1 per cent of employees in India. The report identified technical skilled trade (48 per cent), engineering (45 per cent), IT (39 per cent) and marketing (15 per cent) as the top four areas for recruiting critical functions in the next 12 months.
For executives at management level, the median salary increase is projected at 9.8 per cent, while, mid-management and production or manual labours may receive a 10 per cent hike.
However, variable pay may come down moderately as 63 per cent of respondents did not project a positive business outlook during the next 12 months. While, for executives, it is expected to decline to 17.4 per cent from 20.7 per cent last year, for mid-management level employees it may drop to 10.2 per cent from 12.6 per cent.