Average hike in 2022 to be 8.6%: Survey – Times of India
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BENGALURU: The average salary increment in India is expected to be 8.6% in 2022, buoyed by improved business confidence. The increments match the pre-pandemic levels of 2019. A quarter of the companies in a latest survey have projected a double-digit hike.
Deloitte’s Workforce and Increment Trends survey found that 92% of companies gave an average hike of 8% in 2021, compared with only 4.4% in 2020. Only 60% of companies had extended a pay hike last year, said the report which surveyed over 450 organisations across seven sectors and 24 sub-sectors.
Deloitte Touche Tohmatsu India partner Anandorup Ghose said, “While most companies are projecting a higher increment in 2022 compared to 2021, we continue to operate in an environment where Covid-related uncertainty persists, making it harder for companies to forecast. Some of the survey respondents have also just closed their 2021 increment cycle, so 2022 increments are a fair distance away for them. GDP forecasts for FY21-22 were revised down after the second wave and we expect organisations to closely watch similar developments while managing their fixed cost increases next year.”
Organisations continue to differentiate pay increases by skills and performance. Deloitte India partner Anubhav Gupta said top performers can expect about 1.8 times the increments given to average performers. “Going forward, specific increment differentiation may become more prevalent as attrition rates vary significantly across different skills. Compensation is usually one of the top reasons for attrition, particularly at a junior management level, where virtual hiring has made it easier to jump ships,” he said.
Deloitte’s Workforce and Increment Trends survey found that 92% of companies gave an average hike of 8% in 2021, compared with only 4.4% in 2020. Only 60% of companies had extended a pay hike last year, said the report which surveyed over 450 organisations across seven sectors and 24 sub-sectors.
Deloitte Touche Tohmatsu India partner Anandorup Ghose said, “While most companies are projecting a higher increment in 2022 compared to 2021, we continue to operate in an environment where Covid-related uncertainty persists, making it harder for companies to forecast. Some of the survey respondents have also just closed their 2021 increment cycle, so 2022 increments are a fair distance away for them. GDP forecasts for FY21-22 were revised down after the second wave and we expect organisations to closely watch similar developments while managing their fixed cost increases next year.”
Organisations continue to differentiate pay increases by skills and performance. Deloitte India partner Anubhav Gupta said top performers can expect about 1.8 times the increments given to average performers. “Going forward, specific increment differentiation may become more prevalent as attrition rates vary significantly across different skills. Compensation is usually one of the top reasons for attrition, particularly at a junior management level, where virtual hiring has made it easier to jump ships,” he said.
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