New Delhi: Companies in India are projected to dole out an average salary hike of 9.1 percent this year, the highest level in the Asia Pacific region, as they look for key talent and niche skills, says a report.
However, the quantum is lower than 9.3 percent increase seen in 2019 and also the lowest in a decade.
Leading HR consultancy Aon's annual salary hike survey released on Tuesday also showed that around 39 percent of the companies surveyed are expected to give as much as 10 percent increase in pay.
The results are based on responses from over 1,000 organisations spread across more than 20 industries.
In the Asia-Pacific region, India is expected to dole out the highest salary hike at 9.1 percent, followed by China at 6.3 percent this year.
For India, the previous lowest quantum of hike was 6.6 percent in 2009, as per Aon.
As per the survey, Philippines is anticipated to see a salary rise of 5.8 percent, followed by Malaysia (5.3 percent), Singapore (3.8 percent) and Australia (3.1 percent) in 2020.
"Despite economic challenges in 2019, organisations in India are taking a positive view. Pay increases in India continue to be the highest in the region," Tzeitel Fernandes, Partner (Rewards Solutions) at Aon told reporters here.
A big reason for India's higher salary increase, as compared to other growing economies, is the high inflation rate and the war for key talent and niche skills, Fernandes noted.
In 2019, companies in India gave an average pay increase of 9.3 percent, reflecting a slowdown in the economy compared to 2018, the survey said.
According to the survey, 39 percent firms are expected to raise the salary over 10 percent while 42 percent would go for an increase between 8-10 percent.
In the manufacturing segment, pharmaceuticals is expected to give the highest salary hike followed by FMCG and chemicals, among others.
E-commerce and professional services businesses are expected to give double-digit salary increase this year in the services sector.
"We see a reduction in the differences between pay increases across industries, with 85 percent of the organisations projecting between 7-11 percent, a sign of maturing business ecosystems.
"However, the premium for high performance and new age skills continues to rise," Navneet Rattan, Director (Organisation, Performance and Rewards) at Aon India, said.
About business outlook, 92 percent of the firms surveyed expect their business improving or stabilising in 2020 while the rest 8 percent felt there would be a decline in business.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
Updated Date: Feb 19, 2020 10:38:58 IST