India Inc to witness double-digit salary hike this year, says report

The median salary increment forecast for this year is 10.95%, as against 11.46% last year
Salaries across sectors would likely witness a moderate double-digit rise this year with a median increment of 10.95 per cent, TeamLease Services said in its annual Jobs & Salaries Primer 2019 report, which was released on Tuesday. The median salary increment was 11.46 per cent last year.

 

The report analyses hiring and salary trends across industries, providing an overview of unified salaries across temporary and permanent profiles. For 2019, about 200,000 salary records across 17 sectors and nine cities were analysed to arrive at the insights.

 

According to the report, eight sectors and six cities showed positive sentiment in salary growth. For instance, the fast-moving consumer durables (FMCD) sector in Delhi and the e-commerce and tech start-up sector in Bengaluru illustrated maximum city-sector salary growth of 11.11 per cent and 10.76 per cent, respectively.

 

After a year of unparalleled increments across several sectors in 2018, said Rituparna Chakraborty, co-founder & executive vice-president, TeamLease Services, the focus would be on consolidation in 2019.

 

"The Indian job market is going through a transition phase in terms of job roles with the evolving market needs. Cutting-edge job roles of today and tomorrow will be the focus of employers in the coming years. While hot jobs will continue to attract handsome rewards, median salaries and increments are not looking good enough. All the 17 sectors this report analyses have taken on new roles that are seeped in hi-tech and are the harbingers of tomorrow’s talent landscape. This transition is an indication of the brave new world of smart increments and hot jobs," said Chakraborty.

 

The sectors that will reward talent adequately are banking, financial services & insurance (BFSI), BPO/IT-enabled services, e-commerce & tech start-ups, educational services, FMCD, FMCG, health care & pharmaceuticals, and IT. Talent in these sectors is expected to witness a median salary excess of 10 per cent this year.

 

However, sectors like agriculture and agrochemicals, construction & real estate, media and entertainment, retail & telecommunication exhibited less than 10 per cent growth in salaries.

 

On the other hand, from a city perspective, among the nine cities covered in the survey, Bengaluru, and Chennai were the only that have projected sub-10 per cent growth in median salaries.

 

The report showed profiles like that of a chief technology officer in the e-commerce and tech start-ups arena in Mumbai commands a premium salary increment of 17 per cent.

 

According to the report, while the median salary growth is modest, companies are becoming more and more open to niche skills and profiles. For instance, profiles with greater than 15 per cent salary increment include design engineer in the automobile sector, chief planning officer in construction, and embedded technologies engineer in power and energy sectors in cities like Bengaluru, Delhi, and Mumbai.

 

Further, according to the findings, the wage gap between temporary and permanent profiles has been narrowing significantly. In fact, of the 17 sectors, 16 exhibited low levels of variance of less than 5 per cent in more than 25 per cent profiles.