Aon plc, a leading global professional services firm providing a broad range of risk, retirement, and health solutions, today released the 24th edition of its annual Salary Increase Survey in India. The study, the largest and most comprehensive of its kind in India, analyzed data across 1,000+ companies from more than 20 industries.
As per the results of the survey, companies in India gave an average pay increase of 9.3% during 2019, reflecting a slowdown in the economy compared to 2018. The projection for 2020 is down by 20 basis points to 9.1%. However, despite the dip in the projections, two out of five participating companies in the survey are projecting a double-digit increase, expecting a positive economic outlook.
Tzeitel Fernandes, Partner, Rewards Solutions at Aon, commented,“Despite economic challenges in 2019, organizations in India are taking a positive view. Pay increases in India continue to be the highest in the region. 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.”
Unsurprisingly, the Automotive/Vehicle Manufacturing industry reported the biggest drop (from 10.1% in 2018 to 8.3% for 2020).
Navneet Rattan, Director, Organization, Performance and Rewards, Aon India, said, “We see a reduction in the differences between pay increases across industries, with 85% of the organizations projecting between 7%-11% - a sign of maturing business ecosystems. However, the premium for high performance and new age skills continues to rise.”