India Inc may dole out 8.6% avg increment

New Delhi: Corporate India handed over an average increment of eight per cent in 2021, and early estimates reveal that average increment for 2022 is expected to increase to 8.6 per cent in line with a healing economy and improving confidence, according to a Deloitte survey.

As per the second phase of Deloitte's workforce and increment trends survey 2021, 92 per cent companies gave an increment in 2021 at an average of 8 per cent, compared with only 4.4 per cent in 2020, where just 60 per cent companies had extended a pay hike. For 2022, average increment is expected to increase to 8.6 per cent, at par with the pre-pandemic levels of 2019, the survey said, adding that about 25 per cent companies surveyed have projected a double-digit increment for 2022.

The 2021 survey was launched in July 2021. The primary audience for this survey were seasoned HR professionals. More than 450 organisations participated in this edition spread across seven sectors and 24 sub-sectors. The survey further said that organisations will continue to differentiate pay increases by skills and performance and top performers can expect about 1.8 times the increments given to average performers.

"While most companies are projecting a higher increment in 2022 compared to 2021, we continue to operate in an environment where Covid-19 related uncertainty persists, making it harder for companies to forecast.