India Inc offered the lowest salary hike in a decade to employees in 2020 amid coronavirus crisis, according to human resource consultancy firm Aon India. As per the latest survey report, India Inc employees will get salary hike of 9.1 per cent in 2020, down 20 basis points from 9.3 per cent in 2019. Among the sectors, e hi-tech, IT, pharma and life sciences offered highest salary hikes, while hospitality, real estate, engineering services were among top laggards on pay increase.
According to the 'Salary Trends Survey 2020 - 2021', the previous lowest average salary hike of 6.3 per cent was reported during the global financial crisis in 2009.
The Aon survey, which is based on responses of 1,050 organisations spread across 20 sectors, predicted that India Inc will offer an increment of 7.3 per cent in 2021. Though the quantum of hike remain at low levels, but the number of companies offering increments are likely to increase in 2021, said the report.
The report showed that as many as 87 per cent of surveyed companies intended to pay out salary hikes in 2021. Out of these, 61 per cent is projected to offer hikes between 5 per cent and 10 per cent.
In the ongoing calendar year, 29 per cent of the surveyed companies didn't offer any increments while 46 per cent gave in the range of 5 to 10 per cent to their employees. Only, 16 per cent of the companies offered double digit salary hike.
Given the disruption caused by the COVID-19 pandemic on the economy and businesses, India Inc have shown tremendous resilience and a mature view on talent, says Nitin Sethi, a partner at Aon, and CEO of the firm's Performance and Rewards Solutions practice in India.
"Business and HR leaders made hard decisions in the second and third quarters of 2020 and are now betting on the green shoots of improving consumer demand. They see the need to invest in talent as a critical part of their recovery and growth prospects," he added.