NEW DELHI: Employees in India will see a big wage hike in the next financial year as firms are expected to emerge from the lockdown and there is less demand to supply applicants, according to employers.
Salaries could rise by about 8% in the fiscal year beginning April 2022, especially if officials prevent a third wave of the virus, Michael Page And AON PLC. This is higher than the estimated 6%-8% of surveys for the current year.
India has historically always reported AsiaThe highest increase – and is expected to do so for at least the next two years – but has declined in magnitude in recent years when double-digit inflation subsided earlier in the decade. Consumer prices have risen again during the pandemic, but have mainly been attributed to short-term supply issues.
Forecasts are focused on the organized labor sector, which accounts for less than 20% of the workforce. Most informal labor does not participate in surveys.
Low availability of qualified applicants for organized sector will also increase the salary, as per Roopank Choudhary, Chief Commercial Officer for Human Capital Solutions in India and South Asia In Aon.
“India’s numbers are not always necessarily related to GDP or inflation, there is no perfect correlation, but largely due to the fact that there is a demand-supply mismatch of talent,” he said.
E-commerce, pharmaceutical, information technology and financial services sectors are predicted to offer relatively more Salary Growth in India, while retail, aerospace, hotels and hospitality will lag behind.
Watch Employees in India to see big salary hike in next financial year
Salaries could rise by about 8% in the fiscal year beginning April 2022, especially if officials prevent a third wave of the virus, Michael Page And AON PLC. This is higher than the estimated 6%-8% of surveys for the current year.
India has historically always reported AsiaThe highest increase – and is expected to do so for at least the next two years – but has declined in magnitude in recent years when double-digit inflation subsided earlier in the decade. Consumer prices have risen again during the pandemic, but have mainly been attributed to short-term supply issues.
Forecasts are focused on the organized labor sector, which accounts for less than 20% of the workforce. Most informal labor does not participate in surveys.
Low availability of qualified applicants for organized sector will also increase the salary, as per Roopank Choudhary, Chief Commercial Officer for Human Capital Solutions in India and South Asia In Aon.
“India’s numbers are not always necessarily related to GDP or inflation, there is no perfect correlation, but largely due to the fact that there is a demand-supply mismatch of talent,” he said.
E-commerce, pharmaceutical, information technology and financial services sectors are predicted to offer relatively more Salary Growth in India, while retail, aerospace, hotels and hospitality will lag behind.
Watch Employees in India to see big salary hike in next financial year
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