By the end of this financial year, salary levels in certain sectors are expected to be restored to the pre-pandemic mark, according to TeamLease HRTech CEO Sumit Sabharwal.
"After analysis of data from our client base, we found that the workers in the formal sector witnessed a 3.6 per cent wage cut while informal workers experienced a much sharper fall at 22.6 per cent. The pandemic has shown us the importance of the formal sector in the economy," he noted.
Explaining the reason behind the same, Sabharwal said as normalcy returned and the economy gradually recovered, organisations began giving increments that helped in narrowing the salary gap to the 2019 level.
However, businesses have a long way to go, as there is still a little gap of around 7-14 per cent from the 2019 wage level in certain sectors. "We expect the recovery to reach the 2019 level by the end of this financial year," he added.
Sectors such as education, banking, ecommerce, information technology and telecommunication witnessed an average annual increment in the range of 5-12 per cent.
"Talent retention amid high attrition, recovery in businesses, and easing concerns about Covid-19 disruptions are some of the factors making companies handsomely reward their employees," said Sabharwal.
On the other hand, sectors like automobiles, hospitality, BPO, ITES, construction and real estate were the worst affected by the disruptions during Covid-19. They witnessed layoffs and huge salary cuts of up to 28 per cent during the pandemic.
Some sectors that boomed and progressed amid the pandemic are tech start-ups, ed-tech, online retail and logistics. They experienced high rate of hiring as well as increments, concluded Sabharwal.