How much salary hike to expect next year? Here's what Deloitte survey says

Earlier this month, Deloitte had said that India has emerged as an attractive investment destination for developed economies. Despite economic disruption due to the Covid-19 pandemic, inflow of foreign direct investment (FDI) in India amounted to a record $81.72 billion.

When the coronavirus disease (Covid-19) pandemic struck, it battered the global economy with companies shutting shops, thousands of workers getting fired and economic growth grinding to a halt. In the last two years, the entire world waited with bated breath for companies to reopen and the situation to improve.

The Deloitte survey was launched in July and the primary audience were seasoned HR professionals. (Representative Photo/iStockphoto)

That started happening a year ago, and the economies of many countries have slowly started to come back on track.

Now, a survey about India Inc has revealed that average increment for 2022 is expected to increase to 8.6 per cent, in line with a healing economy and improving confidence. This will be at par with the pre-pandemic levels of 2019.

The Workforce and Increment Trends survey 2021 by Deloitte said that 92 per cent companies gave an increment in 2021 at an average of 8 per cent, compared with only 4.4 per cent in 2020, when just 60 per cent companies had extended a pay hike.

It also said that about 25 per cent companies surveyed have projected a double-digit increment for 2022.

The survey was launched in July and the primary audience were seasoned human resources (HR) professionals. More than 450 organisations participated in this edition spread across seven sectors and 24 sub-sectors, according to Deloitte.

The information technology (IT) sector is likely to offer the highest increments, followed by the life sciences sector, the survey said. Retail, hospitality, restaurants, infrastructure, and real estate companies continue to project some of the lowest increments in line with their business dynamics, it further added.

Earlier this month, Deloitte had said that India has emerged as an attractive investment destination for developed economies. It said that 44 per cent of 1,200 global business leaders based in the US, the UK, Japan, and Singapore plan to make additional or first-time investments in the country.

Despite economic disruption due to the Covid-19 pandemic, inflow of foreign direct investment (FDI) in India amounted to a record $81.72 billion, 10% higher than the previous fiscal year, and this trend would continue, the company said in the report, ‘India’s FDI opportunity’.