Indians Set For Lowest Salary Hike Since 2009 Amid Ongoing Economic Slowdown: Aon Plc Survey
According to Aon, the salaries of Indian employed in the organised sector would grow this year at an average rate of 9.1 percent. The projected percentile increase is less than 2019 (9.3 percent) and 2018 (9.5 percent). The maximum of the hike would be bagged by Indians working in e-commerce companies and start-ups.
New Delhi, February 18: In over a decade, Indians are set for the most lowest salary hike due to the ongoing economic slowdown, predicts the survey released by research group Aon Plc on Tuesday. The increment, the survey states, would be the lowest since 2009 -- when all world economies were recovering from a global depression. India's Industrial Output Slips by 0.3 Percent in December 2019 Amid Fears of Deepening Economic Slowdown.
According to Aon, the salaries of Indian employed in the organised sector would grow this year at an average rate of 9.1 percent. The projected percentile increase is less than 2019 (9.3 percent) and 2018 (9.5 percent). The maximum of the hike would be bagged by Indians working in e-commerce companies and start-ups.
The numbers point towards a pessimistic outlook in the Indian market, as the percentage of annual hike for the workforce in organised sector has been constantly dropping since 2015. Even the 9.1 percent hike, projected this year, is driven due to high inflation and "war for key talent and niche skills", Aon said.
According to Tzeitel Fernandes, partner for rewards solutions at Aon, the salary hike is lowest in over a decade due to "low GDP growth projection" and "weak consumer sentiment". India's economy, according to the central bank, is expected to grow at 5 percent in the fiscal year ending on March 31, 2020. Apart from low GDP growth, the economy is also struggling with a state of stagflation, as demand continues to slide.
(The above story first appeared on LatestLY on Feb 18, 2020 09:19 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).