In the first quarter of the current fiscal, the nominal wage of listed companies bill recorded its lowest on-year growth of 2.2 per cent.
The fall in salaried jobs in the lockdown months had severely hit all corners of the Indian job market but most of the impact was taken up by the unlisted companies and the unorganised sector where 90 per cent of such jobs exist. The fall in employment in listed companies is likely to be less than 3 per cent during the first half, said the Centre for Monitoring Indian Economy (CMIE). This reflects the remarkable resilience of jobs in the listed companies even during the lockdown as according to the survey, the overall fall in salaried jobs during the first half was around 20 per cent, it added.
The fall in 3-4 per cent in employment in listed companies during the period is derived after adjusting the inflation of 6.8 per cent in H1. Ignoring the inflation, it is likely that the on-year growth in the wage bill of listed companies during H1 FY21 could be between 3 and 4 per cent, however, it would be its worst record in decades.
In the first quarter of the current fiscal, the nominal wage of listed companies bill recorded its lowest on-year growth of 2.2 per cent. Further, in the second quarter, the wage bill grew by 6.5 per cent during this quarter, according to the data collected from 1,314 companies. However, the figure could deteriorate in the coming weeks as the sample size rises to more than 4,000. Nevertheless, there has been an improvement in the growth in the wage bill compared to the 2.2 per cent growth recorded in the first quarter.
Meanwhile, the nominal wage bill of listed companies grew by 8.5 per cent in the last fiscal FY 2019-20, which was at a 4-year low. Nominal wages of listed companies had grown by between 9 and 12 per cent in the preceding four years. In addition, much of the increase in the wage bill last fiscal was offset by the 7.5 per cent retail inflation. The inflation-adjusted wage bill of listed companies saw only 0.95 per cent increase in 2019-20, which was the lowest annual growth in real wages in ten years. Meanwhile, the average wages per employee of listed companies was Rs 7,15,082 per annum, CMIE underlined.