According to Willis Towers Watson, a financial risk management and insurance & brokerage advisory firm, has calculated in a financial report called the Budget Planning Survey Report that average salaries in India are expected to rise by 6.4% in 2021.
This number is better than the last year’s 5.9% average salary increase that had been reported. In 2021, hence, the median salary increase will be as up as 7%.
Rajul Mathur, the consulting head of Talents & Rewards for Willis Towers Watson India, stated that, “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.”
He also said that in 2021, it has been calculated that there will be a “greater emphasis on pay for performance and pay linked to business output,” which he has attributed to the compensation budgets being lower than the last years, which will bend the companies to make conserving high-skill talent individuals their priority.
The survey shows that on an average, the top performers within firms will be allotted nearly 20.6% of the salary increase budget, which in India’s context translates to 10.3% of the employees.