NEW DELHI: Salaries in India are projected to rise by an average of 6.4 percent in 2021, marginally higher than the average actual increase of 5.9 percent in 2020, according to a Willis Towers Watson survey.
According to Willis Towers Watson's latest Salary Budget Planning Survey report, an average salary hike of 6.4 percent in 2021 translates to a median increase of 7 percent.
As per the survey, on average, 20.6 percent of the salary increase budget is being allocated to top performers, which represent 10.3 percent of the employees in India.
"This implies that for each Rs 1 allocated to an average performer, Rs 2.35 is allocated to a top performer and Rs 1.25 is allocated to an above-average performer," the survey says.
Amongst sectors, consumer products, and high-tech companies are pegged to offer higher increments, however, energy and business process outsourcing sectors are projected to give the least hike.
"High tech, pharmaceuticals, and consumer products and retail project a median salary increase of around 8 percent, which is more than the general industry projection. The financial services and manufacturing sector projects a 7 percent increase in 2021, while the BPO sector is at 6 percent. The energy sector is expected to see the lowest increase of 4.6 percent," according to Willis Towers Watson's latest Salary Budget Planning report.
The report further shows that although the business environment and sentiment has improved, this may not translate to recruiting more people in 2021 by a large group of employers.
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