Average India Increments At 8% in 2021; Early Estimates For 2022 Projected At 8.6%: Deloitte's survey

Corporate India gave out average increments of 8% in 2021; going forward, early estimates project average salary hikes in 2022 to return to pre-pandemic levels of 8.6% according to the latest Workforce and Increments Trends Survey by Deloitte.

According to the survey findings, 92% companies gave an increment in 2021 at an average of 8%, compared to only 4.4 % in 2020, where just 60% companies had extended a pay hike.

The survey indicates that in 2022, the Information Technology (IT) sector is likely to offer the highest increments, followed by the Life Sciences sector. IT is the only sector that is expected to extend double-digit increments with some digital / E-commerce companies planning to give some of the highest increments.
About 25% companies surveyed have projected a double-digit increment for 2022. Anandorup Ghose, partner, Deloitte Touche Tohmatsu India LLP, said in a statement: “While most companies are projecting a higher increment in 2022 compared to 2021, we continue to operate in an environment where COVID-19 related uncertainty persists, making it harder for companies to forecast. Some of the survey respondents have also just closed their 2021 increment cycle so 2022 increments are a fair distance away for them. GDP forecasts for FY 2021-22 were revised down after the second wave and we expect organisations to closely watch similar developments while managing their fixed cost increases next year.”

Retail, hospitality, restaurants, infrastructure, and real estate companies continue to project some of the lowest increments in line with their business dynamics.

Anubhav Gupta, partner, Deloitte Touche Tohmatsu India LLP, said, “Organisations are trying to balance employee cost with what is best for their employees in what have been a difficult couple of years for many. It is heartening to see most companies extending increments in 2021 even in sectors which have not fully recovered yet. Going forward specific increment differentiation may become more prevalent as attrition rates vary significantly across different skills. Compensation is usually one of the top reasons for attrition, particularly at a junior management level, where virtual hiring has made it easier to jump ships,” added Gupta.