It has been reported that the high-tech sector is expected to see the highest salary increase at 9.9% in 2022, followed by the consumer products and retail sector at 9.5%, and manufacturing at 9.30%. In terms of proportionate increase over last year, the high-tech sector again tops with a projection of almost 1.9% increase from 2021.
India Inc salaries are projected to see a median salary increase of 9.3% in 2022 – translating to an average salary increase of 8.8% — as compared to the actual median salary increase of 8% (average salary increase of 7.4%) in 2021, according to the latest Salary Budget Planning Report by Willis Towers Watson.
High Tech Sector
The high-tech sector is expected to see the highest salary increase at 9.9% in 2022, followed by the consumer products and retail sector at 9.5%, and manufacturing at 9.30%. In terms of proportionate increase over last year, the high-tech sector again tops with a projection of almost 1.9% increase from 2021.
Salary Increase
India’s projected salary increase is highest in the Asia Pacific for the next year as optimism returns over-improved business outlook in the next 12 months and companies recover from the economic fallout of the pandemic and face mounting challenges attracting and retaining employees.
As a large emerging market, India continues to project the highest salary increase for 2021 in the Asia Pacific region. Sri Lanka is projected to see an increase of 5.5%, China at 6.0%, Indonesia at 6.9%, and Singapore at 3.9%.
Increased business
Rajul Mathur, Consulting Leader India, Talent and Rewards, Willis Towers Watson said in a statement: “Increased business optimism is clearly translating into higher salary budgets and increased hiring activity. The pandemic was a watershed moment in the way organisations plan their people’s spending. While talent attraction and retention remain a challenge, the core employee value proposition will now need to go beyond just competitive salaries, and increasingly focus on a wider range of benefits, wellness, upskilling, and the overall employee experience. This trend is likely to reshape the people spend and total rewards philosophy in India going forward”.
Employee Segments
Employees can also expect a higher average variable pay at 15.7% this year for the 2020 performance year. In terms of employee segments, the middle management, professionals and support staff category gained the most proportionate increase on variable pay from 11.6% last year to 22.2% this year. Payout at the Executive level is expected to marginally increase to 27.9% from the actual increase of 26% last year.
For top performers, the average salary increment budget allocation is 22.1%, whereas for average performers it stands at 43%. “With low salary increments last year, organisations have leaned towards a broader distribution of variable pay across employee segments by role, seniority, and performance levels this year,” added Mathur. (the economic times)
