Economy News

Indian Companies set to offer 7.3% average increment to employees this year

According to a survey, Indian companies are projected to shell out an average increment of 7.3 per cent to the employees this year.

Further, the average increment this year is set to be higher than 4.4 per cent compared to 2020 as per first phase of the 2021 Workforce and Increment Trends Survey.

However, the increments will be reportedly lower than 8.6 per cent rolled out by companies as recorded in 2019.

As opposed to 60 percent companies last year, around 92 per cent companies that participated in the survey aim to give an increment this year.

The survey is conducted by Deloitte Touche Tohmatsu India LLP (DTTILLP) which is B2B India-specific survey that was launched in December 2020.

Moreover, it covers around 400 organisations spread across seven sectors and 25 sub-sectors respectively.

Companies in India are also expected to scale up average increment to 7.3 per cent from 4.4 per cent in 2020.

This expected increment is however lower than the 8.6 per cent average increment recorded in 2019.

Around 20 per cent companies aim to provide a double-digit increment this year against only 12 per cent increment in 2020.

One third of the 60 percent companies that doled out an increment last year did that through off-cycle increments.

About 30 percent of the companies that did not give an increment in 2020 will compensate employees for the previous year through higher increments and/or bonuses.

Moving forward, sectors such as the life sciences and information technology (IT) are projected to offer the highest increments.

This is in contrary to the manufacturing and services sectors that continue to offer relatively lower salary increments.

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