Employees in India may get a 10 per cent hike in salaries in 2019, a latest survey said. Willis Towers Watson, a London-headquartered risk management and advisory firm, found that average salary across sectors might rise in India — the highest among major Asia-Pacific economies.
Among major economies in this region, hike in Indonesia is projected at 8.3 per cent. In China it may remain at 6.9 per cent, followed by The Philippines (at 6 per cent) and Hong Kong and Singapore (both at 4 per cent). The estimated 10 per cent average hike in 2019 is at par with the actual rate of increase in the previous three calendar years in India, it said. However, people working in pharmaceuticals may receive better salary hikes in the coming season at 10.3 per cent. Consumer products and retail sector, high tech, and chemical industries will witness a 10 per cent rise.
Sambhav Rakyan, data services practice leader of Asia-Pacific, Willis Towers Watson, said, “India continues to show high salary increments compared to other countries in the region and this can be attributed to the steady economic growth, progressive reforms, and cautious optimism across sectors.”
The Salary Budget Planning Report noted that pay hikes in multinationals (MNCs), involved in KPO/BPO operations, are likely to raise average salary at a higher rate than other Indian firms. While incremental cost for MNCs will be lower due to appreciation of the US dollar, the same will be directly linked to the financial performance of local firms. Moreover, performance of employees will be a crucial factor in determining their raise. Top performers are expected to get 31 per cent higher increment than their peers, who are average or below performers.
Usually, about 42.6 per cent of the total salary increment budget is being allocated to top or above average performers. The report identified technical skilled trade (48 per cent), engineering (45 per cent), IT (39 per cent), and marketing (15 per cent) are the top four areas for recruiting critical functions in the next 12 months. For management-level executives, the average salary hike is projected at 9.8 per cent while mid-management and production or manual labours may receive a 10 per cent raise.
However, variable pay may come down moderately as 63 per cent of respondents did not project a positive business outlook during the next 12 months. For the executives it is expected to decline to 17.4 per cent from 20.7 per cent last year while for mid-level employees it may drop to 10.2 per cent from 12.6 per cent.