Indian companies are projected to implement an average 9.4 per cent salary hike in 2022, according to a survey.
The AON annual salary survey said the projection is a sign of strong post-COVID recovery and improved consumer sentiment.
The 9.4 per cent average pay hike is the highest in six years, except 2018 when the average increment was 9.5 per cent.
AON analysed data from 1,300 companies in 39 industries. According to the survey, IT will be a lead pay master with an average hike of 11.2 per cent, followed by professional services and e-commerce firms, which are projected to pay 10.6 per cent increment to their employees.
Even real estate firms are expected to pay an 8.8 per cent hike, as against 6.2 per cent in 2021. Similarly, the restaurant sector, which was battered by the pandemic, is slated to pay 7.9 per cent hike in 2022.
Nitin Sethi, partner and CEO of Aon’s performance and rewards businesses in India, said: “While 2021 is a year where certain sectors remain under stress due to the COVID-19 pandemic, most businesses have an optimistic view going into 2022 and are projecting higher salary increases. We see positive sentiment across most sectors, high investor confidence with sustained foreign direct investment flowing into the country and growing consumer demand across most segments.”
Roopank Chaudhary, partner in Aon’s human capital business, said that despite another wave of COVID-19 hitting the nation, Indian organisations have displayed resilience in riding through the tough times. “While pandemic risk in India continues, the business sentiment and salary projections for 2022 tell us that employers are building for growth and are much better prepared than in 2020,” he said.