With the economic situation in India gradually improving, more companies in the country are hoping to give better salary hikes and bonuses to existing employees besides ramping up hiring activity.
While only a few companies handed out bonuses and salary hikes to workers in pandemic-hit 2020, the situation is likely to be better this year, according to a fresh survey quoted in an Economic Times report.
At least 60 per cent of the companies who responded to the Michael Page Talent Trends 2021 survey said they are willing to give salary hikes and bonus payouts. Meanwhile, 30 per cent of the surveyed companies are still deciding on whether to give salary hikes and bonuses to employees.
The salary trends survey includes responses from 660 companies and 4,600 employees in India. As per the survey, 55 per cent of companies surveyed are planning to give bonuses to their employees; at least 44 per cent want to give more than one month’s salary as a bonus.
Salary hike possibilities
Higher salary hikes/increments are also on the cards, but it will be different across sectors and companies. Employees in the healthcare and pharma sector can expect the highest salary hike this year at eight per cent, while FMCG employers are planning to give a 7.6 per cent hike.
Employees from the e-commerce and internet sector are expected to get a 7.5. per cent hike, which is marginally higher than the 7.3 per cent hike expected for IT professionals. Banking and financial services professionals can expect an average hike of 6.8 per cent, according to the survey.
Those engaged in professional services may see a 6.7 per cent hike in salary, while retail sector employees can expect an average hike of 6.1 per cent. Transport and distribution employees may get an average hike of 6 per cent and those involved industrial activities and manufacturing may see a 5.9 per cent average salary hike.
Last but not the least, employees working for real estate and construction companies can expect a 5.3 per cent average hike.
While top companies are likely to roll out higher salary hikes, small and medium-sized companies that are still struggling may not be able to roll out a salary hike soon.
To sum it up, there are high chances that only companies that have performed well during the pandemic or multinational companies may roll out a decent average hike this year. For those working in local companies, the chances of a high salary increment are low.
Average hike in 2021
An Aon Survey had earlier indicated that the average amount of salary hike Indian companies will give this year is 7.3 per cent, better than the 6.1 per cent in 2020. However, the salary hikes may not be high as over 60 per cent of companies said they will offer salary hikes between five to 10 per cent.
The Aon salary trends survey had indicated that Hi-Tech, IT, Information Technology Enabled Services, life sciences, e-commerce, professional services and chemicals are some of the sectors that will see bigger hikes.