For the Financial Year 2019-2020 for India, the survey indicates a salary increase of 9.1 per cent. The survey was spread over 1000 organisations covering 20 industries (500 manufacturing and 500 service industry participation), suggested that the biggest drop in the salary hike was observed in the automotive/vehicle manufacturing industry 10.1 per cent in 2018 to 8.3 per cent for 2020.
Among the sectors, professional services and e-commerce/early-stage firms are expected to face a higher-than-average hike of 10 per cent.
The attrition rate has also seen hike, it moved up from 15.8 per cent in 2018 to 16.1 per cent in 2019. On a year-on-year (YoY) basis, the projected hike is down 20 basis points from 9.3 per cent in 2019.
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The salary increase has been considered at a GDP growth of 5.8 per cent and inflation of 3.4 per cent and comapred to 97 per cent last year. This year 92 per cent Indian businesses see improving business outlook.
As per the survey, 30 per cent Indian organisations were reflecting a double-digit increase in salaries. 39 per cent organisations were projecting double-digits increase in salaries for Financial Year 2020. Pay at risk, however, continues to rise.
The survey highlighted salary increases for junior management have been the highest as compared to middle or senior management.