A comparison of projected salary increases across key markets in Asia Pacific this year shows that Indonesia is projected at 6.5%, China at 6.0%, Philippines at 5%, Singapore at 3.5% and Hong Kong at 3.0%.
Of the surveyed companies in India, 37% have projected a positive business revenue outlook for the next 12 months, up from 18% in Q3 2020.
However, despite a comparatively optimistic projected business outlook, recruitment is yet to pick up. The study shows that only 10% of the organisations in India plan to add new headcount compared to 14% last quarter.
Rajul Mathur, consulting head – talent & rewards, Willis Towers Watson India said, “As companies in India respond to the economic implications of the Covid-19 crisis, there is an increased optimism on business recovery, but it is yet to translate into the salary increment budget. With compensation budgets lower than previous years, companies are likely to prioritise allocation towards protecting critical and high skilled talent. Through 2021, we can continue to expect greater emphasis on pay for performance and pay linked to business output.”
High tech, pharmaceuticals and consumer products & retail project a median salary increase around 8%, while the financial services and manufacturing sectors project a 7% increase in 2021. BPO sector, on the other hand, is at 6%, while the energy sector is expected to see the lowest increase of 4.6%.
Arvind Usretay, director, rewards, Willis Towers Watson India said, “All sectors witnessed varying levels of impact due to Covid-19. Some sectors such as hospitality, aviation, travel and tourism were hit harder than the others. Sectors such as Pharma, FMCG, ecommerce and High-tech have experienced growth and this is reflective in their hiring plans and salary budgets for 2021.”