As the market and businesses are again picking up, after a prolonged dip due to pandemic, the salary increments in India are expected to reach pre-COVID levels this year, according to a survey by Korn Ferry India annual rewards. As per the study, the average pay hikes are going to be at 9.4 per cent for 2022 against an actual average raise of 8.4 per cent in 2021. In 2019, a pre-COVID world, the average pay hike in India was 9.25 per cent, claimed the survey.
The survey reveals that most of the businesses in India believe that COVID-19 is unlikely to have an impact on the business cycle this year. Many claim that post the pandemic-induced economic crunch, the current financial year, businesses have recovered from the pandemic and come out strongly. This has led to healthy financial and operational performance for the current financial year after the pandemic-hit FY 2020-21.
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According to industry experts, budgets for increments will largely depend on business performance, industry metrics, and benchmarking trends, adds study. Another reason that is being attributed for a better salary increment this year, is the ongoing race between companies to retain talent. The survey finds that 40 per cent of employees are currently actively looking for jobs.
The survey also claims that the recovery will be among sectors, including tech companies and it is expected it would give an average salary hike of 10.5 per cent, followed by life sciences (9.5 per cent), and services, auto, and chemicals (9 per cent).
Meanwhile, 60 per cent of the 786 surveyed companies are giving allowances to cover monthly Wi-Fi and utility bills and 46 per cent of the companies are offering wellness benefits. On the other hand, only 10 per cent of the surveyed companies plan to reduce or scrap travel allowance, reported CNBC.
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