Notwithstanding the Covid-19 second wave hitting the nation hard, Indian organisations have displayed resilience, and the salary increment is being projected to grow from an average of 8.8 per cent this year to an estimated average of 9.4 per cent in 2022, according to a survey.
As per the Aon’s 26th Annual Salary Increase Survey released on Tuesday, most businesses have an optimistic view going into 2022, with 98.9 per cent of companies intend to give salary increases in 2022, as compared to 97.5 per cent companies in 2021.
There is positive sentiment across most sectors, and India Inc is firmly on the path to recovery, with most firms projecting salary hikes back to FY 2019 levels by FY 2022.
“This is a strong indication of financial health and buoyancy in the economy. There is a clear uptick, from 6.1 salary increase in 2020, we have gone up to 8.8 per cent actual in 2021 and the projected salary increase for 2022 is 9.4 per cent, which is at par with the pandemic number that we had seen in 2018 and 2019,” said Roopank Chaudhary, a partner in Aon’s human capital business.
The survey further noted the pandemic has accelerated the digital journey for organisations and this has led to an unprecedented war for digital talent in the short term and is driving up salary increase budgets and attrition numbers across sectors.
The top three sectors with the highest salary hike projected for 2022 for India are technology, e-commerce and IT-enabled services.
