New Delhi, February 11
Salaries in India are projected to rise by an average of 6.4 per cent in 2021, marginally higher than the average actual increase of 5.9 per cent in 2020, according to a Willis Towers Watson survey.
According to Willis Towers Watson's latest Salary Budget Planning Survey report, an average salary increase of 6.4 per cent in 2021 translates to a median increase of 7 per cent.
"As companies in India respond to the economic implications of the COVID-19 crisis, there is an increased optimism on business recovery, but it is yet to translate into the salary increment budget," said Rajul Mathur, Consulting Head – Talent & Rewards, Willis Towers Watson India.
Mathur further said that with compensation budgets lower than previous years, companies are likely to prioritise allocation towards protecting critical and high skilled talent.
"Through 2021, we can continue to expect greater emphasis on pay for performance and pay linked to business output," Mathur said.
As per the survey, on average, 20.6 per cent of the salary increase budget is being allocated to top performers, which represent 10.3 per cent of the employees in India. "This implies that for each Rs 1 allocated to an average performer, Rs 2.35 is allocated to a top performer and Rs 1.25 is allocated to an above average performer," the survey said.
The survey further noted that median salary increase at the executive level for 2021 is projected at 7 per cent, a slight decline from 7.1 per cent in the previous year.
For middle management, professional and support staff, a decrease from 7.5 per cent in 2020 to 7.3 per cent in 2021 is projected.
The Salary Budget Planning Report is compiled by Willis Towers Watson's Data Services Practice. PTI
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