Indian companies can offer at least 9.3% salary increment for private employees under 7th pay commission in 2022. This figure is estimated to be the highest in the Asia-Pacific. In fact, returns on better business outlook and attrition continue to remain high over the next 12 months. In this regard, Global Consulting and Consulting Firms Willis Towers Watson has prepared a latest Salary Budget Planning Report.
According to which Indian companies can offer at least 9.3% salary increase in 2022. Unlike India, the Asian counterpart China is projected to pay a 6% hike, Singapore and Australian firms may offer around 3.8% wage hike and Vietnam is projected to offer an 8% hike to employees, a bright Indicates the domestic economic outlook.
Aon’s salary survey in September had projected a 9.4% hike by India Inc. The IT, retail and pharma sectors are likely to be the pay masters in 2022, the Willis Towers Watson survey said on Wednesday. The wage increase in 2022 will exceed the 8% increase given in 2021 as companies “emerge from the economic phase of the pandemic and face the growing challenges of attracting and retaining employees.
Salaries for Indian companies are projected to see an average salary increase of 9.3% next year as compared to an actual average salary increase of 8% in 2021. As a large emerging market, India is forecasting the highest wage growth for 2021 in the Asia Pacific region. Apart from this, Indonesia is expected to see growth of 6.9%, China 6.0%, Australia 3.8%, Vietnam 8% and Singapore 3.9%.
Pointing to a much-awaited economic recovery, a majority (52.2%) of companies in India forecast a positive business revenue outlook for the next 12 months, up from 37% in Q4-2020. It is also looking at increased recruitment in businesses with plans to hire 30% of companies in the next 12 months. At the same time, this recruitment is almost three times more than last year.
The survey also shows that a large proportion of hiring across all sectors are engineering (57.5%), information technology (53.4%), technically proficient trades (34.2%), sales (37%) and finance (11.6%). There is scope for recruitment and increment in important areas like . And the employees in these jobs will get high salary.
The survey said that the high tech sector is expected to see the highest salary growth of 9.9% in 2022. This will be followed by offering increments of 9.5% in consumer products and retail, 9.30% in manufacturing and 9% in both financial services and pharma sectors. On the other hand, the energy sector received the lowest real wage growth in 2021 at 7.7%. The estimated salary for the energy sector in 2022 is also the lowest at 7.9%.
