The Salary Budget Planning report released by Willis Towers Watson said the median salary increase at the executive level for 2020 is projected at 10.1%, an increase from 9.6 per cent in the previous year.
As the economy continues to falter, salaries in India are projected to rise 10% in 2020, says a report.
In 2019, the effective wage increase was 9.9% which is projected to touch 10% next year.
While salary increases are stabilising around the 10% mark, they remain the highest in the Asia Pacific region, according to the Salary Budget Planning report released by Willis Towers Watson.
Indonesia is projected at 8%, China at 6.5%, Philippines at 6%, Hong Kong and Singapore both at 4%.
"Though salary increases in India continue to be among the highest in the region, companies are taking a cautious approach and do not intend to make any significant changes from previous years," Willis Towers Watson India consulting leader (talent and rewards), Rajul Mathur, said.
Companies are beginning to make selective skill-based compensation adjustments to cater to requirements around automation and digitisation, he said.
It looks at a range of industry sectors and job grades, focusing on salary movement and review practices to assist companies with their compensation planning.
The survey said the median salary increase at the executive level for 2020 is projected at 10.1%, an increase from 9.6% in the previous year.
For middle management, professional and support staff, an increase from 10.1% in 2019 to 10.4% in 2020 is projected.
The employee group of production manual labour is also projected to receive a higher salary increase of 10.3% as compared to 10% last year.
"Attracting and retaining the right talent at leadership positions is commanding higher pay increases as the leadership pool continues to be limited. The increase is mostly in terms of variable pay as there is a greater focus on pay for performance," the company’s director (rewards) Arvind Usretay said.
Here are some more interesting findings of the survey:
- 25% of the salary increase budget is being allocated to top performers, which represents 11.5% of employees in the country. This implies that for each Rs 1 allocated to an average or below-average performer, Rs 2.16 is allocated to a top performer compared to about Rs 1.3 last year.
- 28% of the companies surveyed have projected a positive business revenue outlook for the next 12 months, down from 37% in 2018.
- 61% companies expect no big change as compared to 57% last year.
- 11% have a downward revenue projection compared to 5% in 2018.