Personal Finance News

Indian Average Salary to hike by 6.4% in 2021

According to a Willis Towers Watson survey, Salaries in India are expected to rise by an average margin of 6.4 per cent in 2021.

It is estimated to be marginally higher than the average actual increase of 5.9 per cent in 2020.

With compensation budgets lower than previous years, companies are likely to prioritise allocation towards protecting critical and high skilled talent.

The survey further reveals that on average, 20.6 per cent of the salary increase in budget is being allocated to top performers, which represent 10.3 per cent of the employees in India.

Rajul Mathur, Consulting Head of Talent & Rewards said that there is an increased optimism on business recovery, but it is yet to translate into the salary increment budget.

He further added that greater emphasis on pay for performance and pay linked to business output can be expected through 2021.

The survey was conducted online in October/November 2020 and received over 18,000 sets of responses covering over 130 countries worldwide.

It is to be noted that median salary increase at the executive level for 2021 is projected at 7 percent, a slight decline from 7.1 percent in the previous year.

However, for middle management, professional and support staff, a decrease from 7.5 percent in 2020 to 7.3 percent in 2021 is projected.

Indonesia is projected at 6.5 per cent, China at 6 per cent, Philippines at 5 per cent, Singapore at 3.5 per cent and Hong Kong at 3 percent respectively.

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