InvestorQ : I recently read that Indian salaries will be hiked by 9.7%. Is this true?
Akansha Shivdasani made post

I recently read that Indian salaries will be hiked by 9.7%. Is this true?

Answer
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simran Kaur answered.
1 year ago


There’s no rule that says that salaries this year will hike by 9.7%. However, this was reported by a study conducted by professional services firm Aon.
Aon, in its 23rd edition of annual Salary Increase Survey in India, analysed data across 1000+ companies from more than 20 industries.
According to the study:
- Indian companies gave average pay increase of 9.5% during 2018, reflecting improved business sentiment compared to 2017.
- Projections for 2019 are stable yet favourable at 9.7% as companies expect a positive economic outlook backed by high economic growth expectation, high domestic demand and low inflation. A decline in voluntary attrition and controlled incremental hiring continue to keep the sentiment mild.
- Number of sectors projecting a double-digit increment have come down over the years. Only five sectors, viz Consumer Internet Companies, Professional Services, Life Sciences, Automotive and Consumer Products are projecting double-digit increment for 2019.
- Increment projections in other sectors are a reflection of the expected growth prospects during the year. With the government’s focus on infrastructure investment, sectors such as cement, metal, engineering services saw a revival in demand and an improvement in increment projections for 2019.
Anandorup Ghose, Partner and Head Emerging Markets, Aon, said, “Every election year presents a set of interesting dynamics in how companies plan and execute on budgets – we expect this year to be no different. But we are fairly confident that the double-digit pay increase days are well behind us as India Inc. shows maturity in managing economic and political cycles.