Pay hikes go south, but India INC optimistic

Aon Hewitt, the global talent, retirement and health business of Aon plc announced the 21st edition of its annual Salary Increase Survey in India. The study analysed data across 1,000 plus companies. The survey projects a drop in pay increases to an average of 9.5% across industries. 

While it’s a marginal decrease from the 2016 spend, it reflects maturity that India Inc has displayed amidst global and Indian economic and political events. This includes, and is not limited to Brexit, recent changes in the US government and the much talked about demonetisation. 

India Inc has approached the ambiguity caused by these events with confidence and has displayed maturity instead of impulsive decision making. Anandorup Ghose, Partner at Aon Hewitt India, said, “Political changes and economic headwinds have had an impact on business performance. 

However, the trend this year reflects a gradual slowing of pay increases and higher emphasis on productivity and performance – quite literally a ‘graying’ of salary budgets for India.” Sectors such as Life Sciences, Professional Services, Chemicals, Entertainment Media, Automotive and Consumer Products continue to project a double-digit salary increase for 2017. However, they have taken a drop from their 2016 actual spends.