Employees to get higher salaries next FY, as the supply of applicants lags demand | Next year will get an average increment of up to 8%, the supply of talent will be less than the demand.

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  • Employees To Get Higher Salaries Next FY, As The Supply Of Applicants Lags Demand

New Delhi38 minutes ago

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  • E-commerce, pharma, IT and financial services companies can give more salary hike next financial year
  • Salary hike may be below average in companies in retail, aerospace, hotel and hospitality sectors

If you do a job, then the next financial year can prove to be good for you. According to leading recruitment companies, your salary may increase more than normal. He says that the companies will have recovered from the lockdown next year. In addition, the supply of talent in the job market may be less than the demand.

An average increase of about 8% in salary is possible

According to leading recruitment firms Michael Page and Aon Plc, companies can expect an average salary hike of around 8% in the next financial year. But this will be possible only if government agencies are able to stop the third wave of Kovid infection from rising. Recruitment firms had earlier given an estimate of 6 to 8% salary hike this year.

India has the highest salary increment among Asian countries

Generally, India has the highest salary increment among Asian countries. This is likely to continue for at least the next two years. However, the percentage of salary hikes has also been declining in recent years, with inflation falling to 10% and above in the past decade.

Retail inflation increased again during Kovid

Although retail inflation has risen again during the Covid period, it is not due to an increase in demand for goods and services, but due to a short-term shortfall in their supply. Salary hike estimates have been drawn specifically for the organized sector, which accounts for less than 20% of the total workforce.

Reason for salary hike, supply-demand imbalance of talent

Salary can also increase due to non-availability of qualified candidates according to the demand of talent in the organized sector. This was stated by Rupank Choudhary, Chief Commercial Officer – Human Capital Solutions, India and South Asia, recruitment firm Aon.

Inflation or GDP growth is not directly related to salary hike

According to Chowdhary, “It is not necessary that inflation or GDP growth is the reason for higher salary hikes in India. There is no direct relation between them. The main reason for the increase in salary here has been the lack of demand and supply of talent.

Higher salary hike in e-commerce, pharma and IT firms

Now the question arises that in which sector companies can grow above average. Companies in the e-commerce, pharma, IT and financial services sectors can give more salary hikes in the next financial year. Salary hikes may be below average in companies in the retail, aerospace, hotel and hospitality sectors.

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