In what can be seen as a reflection of the economic slowdown, India Inc. is expected to offer lowest salary increase in a decade this year.
On an average, Indian employees will witness a pay hike of 9.1% in 2020, according to professional services firm Aon plc, reported Times of India.
This will add to the woes of many in the country who are already gripped under the continuing rise in the prices, especially that of food items, and looming fear of joblessness.
According to Aon’s 24th Annual Salary Increase Survey, on a year-on-year (YoY) basis, the projected salary hike is down 20 basis points from 9.3% in 2019.
Unsurprisingly, the sectors to record the sharpest dip in the salaries include automotive industry, which sees the biggest drop – from 10.1% in 2018 to 8.3% for 2020. Other sectors that will also low hikes in pay are logistics, infrastructure and hospitality, says the study which analysed data from around 1,000 companies across 20 sectors.
“The trend of a dip in salary hikes in India shows that the market is maturing. We will not see heady double-digit salary hikes in the future,” Times of India quoted a senior executive of the company as saying.
However, despite the gloomy figures, the pay hikes in India stand higher than other Asian countries, with Chinese companies expected to offer 6.3% hike, Malaysia 5.3%, Japan 2.4% among others.
Further Immiseration of the Working Population
NewsClick has earlier reported on how rampant joblessness and unbridled price rise, under the Modi government, is a double whammy for the people.
The latest data on the unemployment rate as of January 19 stands at 7.7% in the country, according to daily moving average by Centre for Monitoring Indian Economy (CMIE).
While unemployment continues to rise, general inflation (of all commodities and services) has also risen to a painful 7.59% – recording highest since May 2014.
With the latest projections of salary hikes showing no hope to the working population of the country, it only means further immiseration in the days to come.