Even high-flying spaces like e-commerce and digital, known for double-digit increments, have struggled to keep up with tradition.
Average increments in India have fallen to decadal lows, from 8.6% in 2019 to just 3.6% in 2020, a survey done by Deloitte Touche Tohmatsu India LLP shows. Only four in every 10 companies have hiked salaries, about a third have abstained while 27% are undecided. Even high-flying spaces like e-commerce and digital, known for double-digit increments, have struggled to keep up with tradition.
Those working in the life sciences space, not surprisingly, have been well rewarded but those in sectors like real estate, construction, metals and mining, hospitality, retail, and automobiles, have hadto settle for less.
Pay hikes have been slowing over the past few years with companies facing margin pressures in a slowing economy. India’s GDP grew at 4.2% in 2019-20. However, the pandemic has exacerbated the weakness in the global economy, dragging it into a recession,compelled companies to drop or stop increments as they work to control costs.
Organisations that had already decided on pay hikes, before the start of the lockdown in March 2020, have given their employees a bigger increment.