India to see average 9% salary hike this year, 2% more than pre-Covid era
New Delhi: As India returns to normal after two years of the pandemic, companies are likely to hand out salary increments at an average hike of 9 per cent — as compared to 7 per cent in the pre-Covid era in 2019, a new report showed on Wednesday. Startups and new-age corporations, together with unicorns […]
New Delhi: As India returns to normal after two years of the pandemic, companies are likely to hand out salary increments at an average hike of 9 per cent — as compared to 7 per cent in the pre-Covid era in 2019, a new report showed on Wednesday.
Startups and new-age corporations, together with unicorns and unicorns, are set to lead this trend, with a common estimated hike of 12 per cent.
High-performing individuals and employees with niche skills can expect above-average increments (20-25 per cent or even more on a case-by-case basis) as most organisations have become nimble when it comes to retaining their top talent, according to the report by leading international specialist recruitment group, Michael Page India.
Growth sectors include the banking and financial services industry, property and construction, as well as manufacturing.
Senior-level professionals with computer science backgrounds will be in an especially good position to negotiate for some of the highest paying jobs in India, due to the growth of e-commerce and entire sectors undergoing digital transformation, it added.
“The overall mood is positive as there is a general feeling that the pandemic is behind us. The hiring market has seen an impressive rebound, with companies competing against one another to attract and hire the best talent,” said Ankit Agarwala, Managing Director of Michael Page India.
The mega boost is the result of rising attrition, a huge talent shortage, and a dearth of in-demand skills that are predominantly driving the salaries higher.
“Professionals with niche skills will get higher salary hikes due to a huge dearth of such talent in the market. Remuneration may be important, but it is not everything in talent attraction,” Agarwala added.
The Indian economy grew at an estimated 8.3 per cent for the fiscal year 2021/22 (ending in March 2022), and the forecast for FY 2022/23 is at 8.7 per cent, due to a more positive investment outlook, especially in the manufacturing and infrastructure development.
Data scientists (especially those familiar with machine learning), web developers and cloud architects will be in high demand, especially if they have a bachelor’s degree or a master’s degree from a top-rated university.
The average salary of technologists is expected to be higher than professionals with similar educational qualifications in other job functions, according to the report.
Companies are now looking at retaining top performers with an array of offers including shorter — quarterly or half-yearly — appraisal cycles, promotions, variable pay-outs, stock incentives, retention bonuses, and mid-term increments.
“Employers do not expect any further significant impact of the pandemic on the market and are buoyant about future business plans,” the findings showed.
