In 2019, the salaries in India are going to witness a rise of 10 per cent, the projected salary increase is highest in the Asia Pacific region according to Willis Towers Watson in its Q3, 2018 salary budget planning report.

The report further mentions the salary increase in Indonesia is projected at 8.3 per cent, China at 6.9 per cent, Philippines at 6 per cent and Hong Kong, Singapore at 4 per cent.

According to the report, 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 owing to increasing consumer confidence and purchasing power.

Interestingly, 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, largely due to improved performance, higher premium collections for insurance companies and regulatory reforms.

“Companies in India also depend heavily on base pay to drive performance and differentiation. This approach will likely be under pressure going forward, as the demand for sharper linkage between performance and pay grows further”, said Arvind Usretay, Director, Rewards, Willis Towers Watson India.

The report identifies technical skilled trade (48 per cent), engineering (45 per cent), IT (39 per cent) and marketing (15 per cent ) as the top four areas for recruiting critical functions in the next 12 months.

“To elaborate on Technical skilled trade, for instance, as the Auto industry gears up to the Government push for electronic (green) vehicles, the demand for Li-Ion battery engineers continues to increase. Similarly, in the high-tech industry, demand for specific IT skills such as machine learning, blockchain is expected to grow at the cost of generic skills,” Usretay added.

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