India will see a 10% wage increase in 2020: report
MUMBAI: As the economy continues to falter, wages in India A 10% increase is expected in 2020, according to a report.
In 2019, the effective salary increase was 9.9 percent, which is expected to reach 10 percent next year. While wage increases are stabilizing at around 10 percent, they remain the highest in the Asia Pacific region, according to the salary budget planning report published by Willis Towers Watson.
Indonesia is projected at 8 percent, China at 6.5 percent, the Philippines at 6 percent, Hong Kong and Singapore, both at 4 percent.
Although wage increases in India continue to be among the highest in the region, companies are taking a cautious approach and do not intend to make significant changes over previous years, Rajul Mathur, consulting leader of Willis Towers Watson India (talent and rewards). , said.
Companies are beginning to make selective skill-based compensation adjustments to meet automation and digitization requirements, he said.
It analyzes a variety of industrial sectors and job qualifications, focusing on salary movement and review practices to help companies with their compensation planning.
The survey said the median Salary increase At the executive level by 2020, it is projected at 10.1 percent, an increase of 9.6 percent in the previous year.
For middle management, professional and support staff, an increase from 10.1 percent in 2019 to 10.4 percent in 2020 is projected.
The employee group of production manual labour is also projected to receive a higher Salary increase of 10.3 per cent as compared to 10 per cent last year.
Attracting and retaining the right talent in leadership positions requires higher salary increases since the leadership group remains limited. The increase is mainly due to variable wages, since there is a greater focus on performance pay, said company director (rewards) Arvind Usretay said.
On Salary increase s by performance levels, the survey found that on an average, 25 per cent of the Salary increase budget is being allocated to top performers, which represents 11.5 per cent of employees in the country.
This implies that for every Rs 1 assigned to an average or below average performance, Rs 2.16 is assigned to a higher performance compared to approximately Rs 1.3 last year, according to the report.
Of the companies surveyed, 28 percent have projected a positive outlook for business income for the next 12 months, compared to 37 percent in 2018.
Whereas 61 percent do not expect major changes compared to 57 percent last year; and, 11 percent have a projected downward revenue compared to 5 percent in 2018, he said.