Pay hikes across India's organized sector will increase at the slowest pace since the year 2009, claims a survey from AON. 

According to Business Today, slowdown in the economy is one of the biggest reasons for subdued salary increase projections; meaning, we might be set for another round of disappointing appraisals. 

Receiving a cheque
Source: Business Standard

The trend means that a majority of Indian companies, which gave an average pay hike of 9.3% in 2019, will only be able to give an average pay hike of 9.1% in the year 2020. 

This study was based on data taken from over 1000 companies across 20 different industries. 

Indian employees
Source: DNA India

Despite the dip, salary projections have still been kept in a slab of 8 to 10 percent by almost 42% of the organizations. 

Even companies projecting a decline in revenues in 2020 are looking at offering an 8.1% salary increase to keep their resources engaged during this phase of turmoil. 

Infosys building
Source: Wikipedia

Despite the stagnant figures, India is still ahead of some of the developed nations from Asia. 

China is on the second spot (6.3%) followed by Philippines (5.8%) and Japan (2.4%).  

Source: Bloomberg

Where all Indian Industries are still rewarding top performers, the biggest dip has been reported in the Automotive/Vehicle Manufacturing industry (from 10.1% in 2018 to 8.3% in 2020). 

Speaking on the trend, Navneet Rattan, director of AON India, said: 

We see a reduction in the differences between pay increases across industries, with 85 per cent of the organisations projecting between 7-11 per cent - a sign of maturing business ecosystems. However, the premium for high performance and new age skills continues to rise.
500 rupee note with 10 rupee coins on an iMac
Source: Unsplash

Despite all the economic challenges in the year 2019, India continues to provide the highest pay increases in the entire Asian region. 

The reason for this is the ever-so-high inflation rate in the country and the war for key talent and skills between a humongous workforce.  
In case you were expecting the turn of the decade to be financially better, we're sorry to break the bad news.