The first spending item on the chopping block is capital expenditure, followed by operating costs and overheads, including sales and marketing expenses.
As many as 65 per cent of the 233 companies surveyed across the region plan to provide base salary hikes for executives, compared with only 30 per cent in 2009.
The one-time restructuring of loans will help every firm and prevent cost-cutting measures such as lay-offs.
Declining interest rates, a near-normal monsoon leading to higher rural incomes and pay hikes for central government employees are key triggers, says Dev Chatterjee.
"India's middle class, small traders and farmers are the lifelines of its economic growth. By catering to these ambitions #Budget2019 infuses hopes for millions of dreams."
Employees of some top Indian companies were in for a pleasant surprise when they received a mail from their HR team announcing a hike in salaries and bonuses. Led by IT firms and start-ups, HR managers say that while some have offered cash and stock options, others are in a wait-and-watch mode and add the trend will pick up in other sectors. For example, IT giant Cognizant - which had an attrition rate of 19 per cent in the December quarter - has established a $30-million employee retention fund in order to bring down the high attrition rate.
Some sectors like aviation, hospitality, travel and tourism, and automobile have witnessed zero cash flow since the lockdown began.
A senior official in the central labour commissioner's office said the efforts of the government were to resolve the cases amicably and not to press for legal action against employers. "Everyone is going through tough times. We could initiate legal action if we want but that's not the idea. We want to address the issues amicably," the official said.
The increment percentages have dropped by 1-2 per cent across levels compared to last year.
India Inc will see single-digit salary increases for the first time in six years and the salary increase projections may fall even further in the coming months, says a report by HR consultants Hewitt Associates.
A glance back at some of the important ups and down Indian Inc faced in 2018.
Lack of political consensus on economic reforms a key concern.
Executive take-homes touched a new peak, fuelled by companies' hunt for star talent.
Batting for greater transparency, a Sebi panel said sound corporate governance helped companies generate "significantly greater returns".
As the economy has crossed over 9 per cent growth, the industry is facing the supply constraint of trained manpower, resulting in higher wages.
Corporate India is on the path to recovery after having been pummelled around in the global recessionary storm, with companies showing optimism on hiring and salary increases, says a joint Mercer-CII survey.
India Inc may have been spiralling salaries in the recent years, but not anymore as double-digit pay hikes can well be a 'thing of the past', thanks to the financial crunch forcing corporates to embark on cost-cutting spree.
India Inc is expected to witness an average eight per cent salary increase this year and as much as 50 per cent of companies have strong hiring plans for the next three months.
Only five sectors such as consumer internet companies, professional services, life sciences, automotive and consumer products are projecting double-digit increment.
Reflecting the growth expectations of 5 per cent, India Inc has projected an average salary increase of 10.3 per cent for 2013, says the Aon Hewitt Annual Salary Increase Survey.
Though India was under lockdown for only seven days of the quarter, global demand and commodity prices began falling from February as COVID-19 was spreading in other countries. 1,002 listed companies - excluding banks, non-bank lenders, insurers, brokerages, and IT firms - reported a combined pre-tax loss of around Rs 2,700 crore during Q4.
Overall, it has projected a 10.3% salary rise for India Inc in 2016 compared to 10.6% in 2015.
Chief executives in the real estate, consumer products, automobiles, construction, and textile sectors said they were all expecting workers to re-join in the next 45-60 days, which would help them ramp-up production from July.
The projected increase for 2020 is lower than the average salary hike that graduates of top business schools have managed - at around 12 per cent.
The government on Tuesday extended till March 15 the deadline for corporate to file Income Tax returns for the fiscal ended March 2021. The deadline to file tax audit report and transfer pricing audit report for 2020-21 fiscal too has been extended till February 15. This is the third extension given to corporate for filing the income tax return for 2020-21 fiscal.
Notwithstanding the COVID-19 second wave hitting the nation hard, Indian organisations have displayed resilience, and the salary increment is being projected to grow from an average of 8.8 per cent this year to an estimated average of 9.4 per cent in 2022, according to a survey. According to the Aon's 26th Annual Salary Increase Survey released on Tuesday, most businesses have an optimistic view going into 2022, with 98.9 per cent of companies intend to give salary increases in 2022, as compared to 97.5 per cent companies in 2021. There is positive sentiment across most sectors, and India Inc is firmly on the path to recovery, with most firms projecting salary hikes back to FY 2019 levels by FY 2022.
Among the sectors, the survey has projected IT, pharma and life sciences, and ITeS among those looking to effect the highest increase in salaries.
"We think Indian companies are getting ready for the revival and plan to hire strategically going forward. 2010 looks to be a good year from a salary increase perspective."
Employers in India have no choice but to pay high salaries to their staff, with industrial growth demanding more manpower.
Adapting to the new hybrid normal of remote and office work, cautiously optimistic corporate are looking to hire more people and provide better appraisals in the new year as they step out of the pandemic-ravaged 2020. The coronavirus pandemic emerged as the biggest inflection point for the Indian job landscape. For the corporates, work-from-home and remote workers became the new normal and for the professionals, online learning and digital skills took centrestage.
'A cutback in hiring and compensation growth by IT companies will have a significant impact on consumer demand, especially in the urban sector of the economy.'
Indian companies are expected to give an average 11 per cent salary hike this fiscal as firms increase their strategic spending, says a survey.
'These are the people that have worked for you. These are the people who have served you all their careers. You send them out to live in the rain. Is that your definition of ethics when you treat your labour force that way?' the titan asks.
A parliamentary panel's suggestion that CEOs' salaries should be capped has not found favour with industry chambers and leaders, who said the matter should be left to corporates and their shareholders.
After factors such as tax and cost of living are taken into consideration, corporate India's top brass can boast of an average disposable income of just $92,750 compared to other fast growing economies like Brazil, Russia and China.
Govt feels that the perception about the rich and the poor divide is getting bigger and bigger.
Indian firms across sectors, especially small- and medium ones will see their annual wage bills increase from this financial year since the government has raised the eligibility limit for statutory bonus payments to those who earn Rs 10,000 a month (basic salary and dearness allowance).
The speech could have been avoided had the industry representatives been more attuned to the nuances of PM's views on inclusive growth.
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