India to see higher wages as companies look past the coup of Covid, Auto News, ET Auto
NEW DELHI: Employees in India will see bigger pay increases in the next fiscal year as companies expect to emerge from bottlenecks and the supply of candidates lags behind demand, recruiters say.
Paychecks could rise by around 8% in the fiscal year beginning in April 2022, especially if authorities avoid a third wave of the virus, according to Michael Page and Aon Plc. This is higher than the 6-8% polls forecast for the current year.
India has historically consistently reported the highest increases in Asia – and is expected to do so for at least the next two years – but the magnitude has declined in recent years after double-digit inflation at the start of the decade. has faded. Consumer prices rose again during the pandemic, but were mostly attributed to short-term supply issues.
Forecasts focus on the organized labor sector, which represents less than 20% of the workforce. A large part of the informal workforce is not taken into account in the surveys.
The low availability of qualified candidates for the organized sector will also support salaries, according to Roopank Chaudhary, commercial director of human capital solutions in India and South Asia at Aon.
“India’s number has always been driven not necessarily by GDP or inflation, there is no perfect correlation there, but largely because of the fact that there is a mismatch between the supply and demand for talent, ”he said.
The e-commerce, pharmaceuticals, information technology and financial services sectors are expected to offer relatively larger pay increases in India, while retail, aerospace, hotels and hospitality will be lagging behind.