Pay Rise in 2021

COVID has given us nightmares, in ways we never could have imagined and one of the most impacted parts of one’s life by this uninvited guest was their professional life. From as operational as routine, work pattern to economically scarring in terms of being half paid for months and even losing jobs.

Now when we are in January and have passed the year with a lot of scars and bad experiences, most of the year-end discussions are either done or pending 

So now the question comes 

“What can we expect from 2021 in terms of our salaries?” 

“Would I be getting any pay rise this year”?

To most of us, the answer can be as simple as “No!  That we are not getting anything this time and this is another year going to be with the same salary figures.” But let me tell you, it isn’t that simple! As even companies need to retain their workhorses, their talent and considering most of the companies have already cut off the slack last year, it would be really interesting to see who gets what! But one thing’s for sure it shouldn’t be all black, there should be some sunshine.

This was the expectation, now let’s see if there are any facts or figures supporting this. Like us, several industry experts and big survey companies are keenly interested to know how companies are going to handle the increment cycle this year.

Michael Page Global Survey

As per Michael Page, Global Survey, which covered 660 employers and 4,600 professionals,  in India six in 10 companies intend to hand out increments this year while 55% plan to give bonuses. Nearly 30% of companies are yet to make a decision on this front, the survey shows.

The key findings of the survey are as below:

• The healthcare and life sciences sector is likely to clock the best average increment of 8%, followed by fast-moving consumer goods (7.6%), e-commerce and internet (7.5%) and technology (7.3%).
• Banking and financial services will be next, with annual hikes averaging 6.8%.
• Professional services and retail can expect raises between 6% and 7%, but hikes in the crisis-hit sectors of manufacturing and real estate will lag at 5.9% and 5.3%, respectively.
• Further, 53% of companies are looking to increase their headcount in 2021.

Source: Linkedin

Aon’s Salary Increase Trends Survey 2020-21

The survey by Aon included 1,050 organizations across more than 20 industries and across different industry sizes that covered over 1000 organizations from India Inc.

Here are the key highlights of the survey by Aon

• 87% of companies plan to give a salary increase in 2021 as compared to 71% in 2020
• The projected salary increase in 2021 is 7.3% as compared to the actual 6.1% increment in 2020
• Hi-Tech/ IT, Pharma & Life Sciences, and ITeS are projected to receive increments at a higher rate
• Hospitality, Real Estate, and Engineering Services are the sectors that will experience the lowest increase

Source: Peoplematters

Now, based on both of the surveys here is a quick summary:

• The majority of companies are planning for a hike in 2021 even more than what they had planned for 2020
• This increment will vary from sector to sector
• It shouldn’t come as a surprise that Life Sciences and Pharma is going to be the major winner in terms of appraisals and increments this year
• The same goes with E-commerce and Tech as this last year has totally changed the way how people access basic functionalities and that has given a real boost to E-commerce. The fact that you don’t have to step out and your stuff will be delivered to your doorstep safe and sound has urged people to move from retail shops to e-commerce and that in turn has led this sector to a major boost.
• Banking and financial institutions come next as this is more of a basic necessity sort of business line. Where even in crisis, banks were there to support your needs and that gave them a decent amount to get going, for sure not that much but as usual. 
• There is no prize for guessing that hospitality, real estate will take time to gain the momentum so they will be on the lower side of the gain.
• Also, it can also depend on your job profile, but that wouldn’t be a new thing as we all know there are roles that get paid higher than the others.