HomeBusiness‘At 9.3%, expect higher hike in 2022’ - Times of India

‘At 9.3%, expect higher hike in 2022’ – Times of India

CHENNAI: Pay rises are making a comeback as India Inc budgets for bigger raises in 2022 compared to the current year on the back of economic recovery and amid high attrition.
Salaries are projected to see median increase of 9.3% in 2022 (average increase of 8.8%) as compared to the actual median salary increase of 8% (average increase of 7.4%) in 2021, according to a report by advisory firm Willis Towers Watson. In 2019 (pre-Covid), actual salary increase had stood at 9.9%.
Considering inflation levels, the workforce is likely to see a 4.8% ‘real’ pay hike (pay hike-inflation rate) for 2022 compared to a real increase of 4.2% that India Inc doled out in 2021.
A median salary increase cannot be pulled higher or lower by values at the extreme ends of the distribution and is hence therefore considered a better measure
Employees can also expect a higher average variable pay at 15.7% for their work performance in the year 2020 compared to 12% they were paid in 2020 (based on 2019 performance)
India’s projected salary increase is highest in AsiaPacific for next year as optimism returns over improved business outlook in next 12 months. Sri Lanka is projected to see an increase of 5.5%, China 6%, Indonesia 6.9%, and Singapore 3.9%.
Attrition rates in India, though high, have been lower compared to other countries in the region. India’s voluntary attrition rate at 8.9% is lesser than China’s 11.6%, Vietnam’s 11.7% and Australia’s 9.4%.

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