Pay hikes across India's organized sector will increase at the slowest pace since the year 2009, claims a survey from AON.
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.
Despite the dip, salary projections have still been kept in a slab of 8 to 10 percent by almost 42% of the organizations.
Despite the stagnant figures, India is still ahead of some of the developed nations from Asia.
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).
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.
Despite all the economic challenges in the year 2019, India continues to provide the highest pay increases in the entire Asian region.