Appraisal Percentage in 2021: Salary Increment Trends in India

YouTube video

Welcome to The Learning Hub, where we bring you all the latest updates on professional life and career growth. As we enter the month of March, the talk about salary appraisals and increment percentages is gaining momentum. In this article, we will share some data and facts regarding the projection of salary increments in 2021 in India. Based on surveys conducted by top companies like Eon Hewitt, Michael Paige, and Tower Watson, we will discuss the average increment percentage, industry trends, and what to expect if you’re considering a job change this year.

Average Increment Percentage in India

Leading organizations, such as Eon Hewitt and Deloitte India, have conducted surveys to determine the average increment percentages in India for this year. Eon Hewitt surveyed 1,200 organizations across 22 industries, while Deloitte India surveyed 300 organizations in seven sectors and 20 sub-sectors. The overall findings suggest that certain industries are likely to witness higher salary hikes, while others may experience lower increments.

Industry-wise Increment Trends

If you work in sectors like IT, FMCG, life science, healthcare, or pharmaceuticals, you can expect a good hike in your salary this year. These industries have shown positive growth and are likely to reward their employees accordingly. However, if you are in the hospitality, restaurant, real estate, infrastructure, or engineering services industries, it is advisable to keep your expectations on the lower side. Unless you are a top performer or hold a critical role within the organization, the increment may not be as significant. Additionally, the implementation of new labor codes this year has led companies to hold back on their budgeting for increments, as they may need to review employee compensation structures in the second half of the year.

Michael Page Compensation Survey

Michael Page, another leading organization, conducted an annual compensation survey in India. The key highlights of their report indicate that 53% of the participating organizations are planning to increase their headcount this year. Moreover, 75% of employees in these organizations are looking to change jobs, suggesting high job market activity. The report also reveals that 65% of these employees anticipate a salary hike if they switch jobs. For those considering a job change in 2021, the projected salary hike could be a motivating factor.

Industry-wise predictions from Michael Page’s report suggest that the real estate and construction industry may witness a lower salary increment due to the negative impact of the pandemic. However, the technology industry is expected to see higher salary hikes as technology has emerged as a game changer during the lockdown period. Organizations have become more tech-savvy and dependent on technology, making it a salary growth driver in the sector.

Aion Report

According to Aion’s survey, 87% of companies are planning to give salary hikes this year compared to 71% last year. This indicates an overall improvement in the job market. The projected salary increment for 2021 is 7.3%, a significant increase from the previous year’s 0.1%. If you work in industries like IT, high-tech, or life sciences, you can expect a good hike from your employer. However, if you are in the hospitality, real estate, or engineering services industries, it’s advisable to adjust your expectations accordingly.

In conclusion, the projection of salary increments in India for 2021 suggests positive trends in certain industries. Employees in sectors like IT, FMCG, life sciences, and healthcare can anticipate a significant hike in their salaries. On the other hand, those in hospitality, real estate, and engineering services industries may need to keep their expectations in check, unless they possess exceptional skills or are top performers within their organizations.

We hope this article provided you with valuable insights into the salary increment scenario in India for 2021. Stay tuned for more informative videos and updates on professional growth. Don’t forget to subscribe to our channel for regular updates. Wishing you the best of luck in your career journey!