The majority of companies operating in India in 2020-21 are likely to give an average salary hike of 7.8% to their employees, according to a survey by Deloitte India.
This projected salary increment is 40 basis points lower than the actual salary increment of 8.2% that employees received in 2019-20, revealed the survey titled 'Workforce and Increment Trends Survey'.
The key audience for the survey was HR professionals in 300 organizations spread across 7 sectors and over 20 sub-sectors.
The survey found that almost 50% of the companies surveyed are projecting a salary increment of less than 8% for 2020-21. Only 8% companies are expecting to offer pay increases greater than 10%.
More than 30% of the respondent companies, the report said, differentiate increments by levels of management.
The survey found that the projected salary increments for 2020-21 are expected to be the lowest in industries such as infrastructure and real estate, non-banking financial companies (NBFCs) and telecom.
The survey also reported that at an all-India level, voluntary attrition slightly reduced in the current financial year to about 15%, involuntary attrition (layoffs, restructuring, etc) has increased to 20% of the total attrition.