Aon’s salary increase survey: 88% companies intend to increase pay in 2021

There are higher chances of employees getting salary hikes in 2021, the Aon Salary Increase survey shows that 88 percent of companies intend to hike salaries in 2021 versus 75 percent of companies in 2020.

The survey also projects an average hike of 7.7 percent this year versus a 6.1 percent increase last year. The sectors, which are projected to see the highest salary hikes include e-commerce, venture capital, hi-tech and information technology, ITeS, and life sciences.

On the other hand hospitality, restaurants, infrastructure, and engineering services are projected to see the lowest salary hikes.

CNBC-TV18 spoke to Nitin Sethi, CEO - India & South Asia at Aon, to discuss details of the report.

Talking about findings from the survey, Sethi said, “First thing of the survey is that most companies - 88 percent of them believe that 2020-2021 is going to be a good year. 92 percent of the companies in the survey believe that they see either growth or stabilisation happening in 2021 and this is reflective in salary increase numbers of an average of 7.7 percent.”

“Companies that are likely to give out higher increases are ones that have their typical pay cycles in the month of April and June and their numbers are about a percent higher than the others. The other group of companies that are likely to have higher increases are startup organisations, venture backed firms, for many of these companies 2020 has been a pretty interesting year,” he said.

“Some other sector which genuinely need full scale economy to kick in retail, travel, hospitality are hovering between 5-6.50 percent.”