Indian companies to offer lowest pay hike in a decade

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Anum
Anum Ansari
Assistant Manager – Content
New Delhi, Updated on Feb 20, 2020 09:25 IST

According to the survey done by human resource consultancy firm Aon Plc, the sector that was seen giving the highest hike across the 20 sectors is e-commerce. The e-commerce sector is recorded giving double-digit pay hikes to the employees. The survey also showed that the biggest drop is reported by the vehicle manufacturing industry i.e. from 10.1 percent in 2018 to 8.3 percent for 2020.

 

According to the latest survey, this year, India will see the lowest salary increase as compared to the data of the last decade. The survey reveals that India’s top national job generators, the real estate and transport sectors will also receive the lowest pay hike in the last 10 years. However, the sharpest hike is being reflected in the auto sector, projecting its stressed situation.

According to the survey done by human resource consultancy firm Aon Plc, the sector that was seen giving the highest hike across the 20 sectors is e-commerce. The e-commerce sector is recorded giving double-digit pay hikes to the employees. The survey also showed that the biggest drop is reported by the vehicle manufacturing industry i.e. from 10.1 percent in 2018 to 8.3 percent for 2020.

The survey also reflected the slowdown in the economy as compared to 2018. The survey results revealed that the companies in India gave an average pay increase of 9.3 percent during 2019.

The report also said that the year 2020 projection is down by 20 basis points to 9.1 percent. There must be an economic slowdown and companies are giving the lowest hikes ever but there are two out of five companies in the survey that are expecting a positive economic outlook and are giving double-digit salary increase.

After analyzing more than 1,000 firms in 20 sectors, it says that the highest paymasters in the year 2020 will be e-commerce services, start-ups, and pharma firms.

India might offer the lowest pay hike in the year 2020 but according to the survey, it is still higher than the hike that employees are to receive in other Asian countries. It is expected that Chinese companies will offer a 6.3 percent hike, followed by Malaysia 5.3 percent, Singapore 3.8 percent, Australia 3.1 percent, Philippines 5.8 percent, and Japan 2.4 percent.

The average hike expected from e-commerce and start-ups is 10 percent. A similar number is expected from professional service. However, IT companies and pharma are expected to give 9.6 percent and 9.9 percent hike respectively.

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Anum Ansari
Assistant Manager – Content

"Writing is not about accurate grammar, it's about the honest thoughts you put in it". Having a versatile writing style, Anum loves to express her views and opinion on different topics such as education, entertainme... Read Full Bio

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