Aon Salary increment survey 2020: Salary hikes in 2020 lowest in a decade
Parul February 19, 2020
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As per the Aon Salary Increase Survey, the Indian employees could see the lowest salary increase in a decade, with a 9.1 percent hike in 2020. It is said that the salary hike in 2020 is among the lowest figure since 2009 (at 6.6 percent). On a year-on-year basis, the projected hike is down 20 basis points from 9.3 percent in 2019. The survey, however, said that India topped the list among the Asia Pacific region.
This study has analysed that despite the dip in the projections, two out of five participating companies in the survey were projecting a double-digit increase, expecting a positive economic outlook.
Navneet Rattan, Director, Organization, Performance and Rewards, Aon India, quoted on this study that there is a reduction in the differences between pay increases across industries, with 85 percent of the organizations projecting between 7 percent to 11 percent. According Navneet, it a sign of maturing business ecosystems.
He further said, “when it comes to the compensation structure, the quantum of variable pay or performance-based compensation is also on the rise. It rose to 16.1 percent in 2019 compared to 15.2 percent in 2018. In fact, attrition also rose to 16.1 percent in 2019 compared to 15.8 percent in 2018 despite a tough economic situation. This could also be an indicator that top performers are able to get alternative employment opportunities easily, he added.”