The salaries in India are projected to rise at 10 per cent in 2019. This is the same as the increase in salary in 2017, according to the 2018 Salary Budget Planning Report released by advisory company Willis Towers Watson. The current figure was higher in 2015 when the salaries grew by 10.4 per cent.
The report reveals while salary increases in India will remain the highest in the Asia Pacific region. Indonesia is projected at 8.3 per cent, China at 6.9 per cent, the Philippines at 6 per cent, both Hong Kong and Singapore at 4 per cent each.
“India continues to show high salary increments compared to other countries in the region and this can be attributed to the steady economic growth, progressive reforms and cautious optimism across sectors. However, workplace automation, artificial intelligence and robotics are expected to reshape a new combination of work, talent, skills requirements and work relationships. Organisations, therefore, should re-examine not just their talent strategies but also how they will remunerate and reward the workforce of the future,” said Sambhav Rakyan, Data Services Practice Leader, Asia Pacific, Willis Towers Watson.
The report highlights median salary increase for 2019 at the executive level is projected at 9.8 per cent which is a marginal increase from 9.7 per cent in the previous year and at 10 per cent for mid-management and production/ manual labour, a drop from 10.1 per cent.
Among the sectors, the pharmaceuticals sector has the highest projected salary increase for 2019 at 10.3 per cent. The salaries for consumer products and retail sector will remain consistent at 10 per cent due to the green shoots of recovery in the sector’s performance, increasing consumer confidence and purchasing power.
The financial services sector, mainly comprising banks, NBFCs and insurance companies, has seen a steady increase from 9.1 per cent in 2017 to 9.6 per cent for 2019 due to improved performance, higher premium collections for insurance companies and regulatory reforms.
The survey was conducted in June 2018 across 21 markets in Asia Pacific, including India.