2021 increments pegged at 8% level; only 25% of companies project double-digit increments for 2022
Average annual salary increments are expected to touch pre-pandemic levels of 8.6 per cent in 2022, early estimates from the Workforce and Increments Trends Survey by Deloitte reveal. In line with the gradual improvement in business confidence in recent months, about 25 per cent of the companies surveyed have projected a double-digit increment in 2022, the report said.
Following the pandemic-induced lockdowns and travel restrictions in 2020, average salary increments dropped to 4.4 per cent-level. However, as business sentiments improved in recent months, the average India increments in 2021 are pegged around the 8 per cent-mark, the survey noted.
The India-specific B2B survey was conducted in July 2021 with the participation of HR professionals from 450 organizations spread across more than two dozen sectors and sub-sectors.
The survey indicates that in 2022 the information technology sector is likely to offer the highest increments, followed by the life sciences sector. IT is the only sector likely to offer double-digit increments, with digital/e-commerce companies topping the list. However, increments are likely to be muted in retail, hospitality, restaurants, infrastructure, and real estate sectors in 2022.
Across organizations, pay increases will be uneven with companies linking skill up-gradation with performance. Top performers can expect 1.8 times the increments given to average performers, the survey found.
Going forward, function-specific increment differentiation may become more prevalent as attrition rates vary significantly across different skills, noted Anubhav Gupta, partner, Deloitte Touche Tohumatsu India.
Approximately, 12 percent of employees were promoted in 2021, as compared to 10% in 2020. With respect to hiring, 78% of companies stated that they have started to recruit at the same pace they used to prior to the Covid-19 pandemic.
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