Salaries in India are projected to rise 10 percent in 2018, same as the actual increase in 2017, according to the Q3 2017 Salary Budget Planning Report released by Willis Towers Watson, broking and solutions’ company. The report analysed a range of job grades across various industry sectors and is designed to provide companies with guidance for their annual salary forecasting for the year ahead.
Although salaries in India are seeing a decreasing pattern in the year-on-year salary increases, India’s projected salary for 2018 is still the highest in the Asia Pacific region. Indonesia is projected at 8.5 percent, China at 7 percent, Philippines at 6 percent, and Hong Kong and Singapore both at 4 percent.
Salary allocation for top performers in 2017 increased to 39 percent up from last year’s 38 percent. On the other hand, the budget set aside for average performance budgets decreased by 1 percent to 27 percent.
The report highlights that executive salaries have shown little change and in some cases show a downward trend. However, in the mid-management level, the salary increase range is wide – from a 2-3 percent for average performers to 15 percent for top performers. The junior management salary increases will average around 10 percent but may have a wider range.
Among the industries covered in the report, the most notable projected salary increase is seen in the energy, FMCG and retail sectors. At 10.5 percent, these sectors are expected to do better than the overall projected salary of 10 percent. This is reflected in the focus on reforms in the renewable energy sector, and convergence in online and offline in the retail sector.
Whereas, the significant change in projected salaries is expected in the pharmaceutical sector (from 11 percent in 2017 to 10.3 percent projected for 2018). Notably, at 9.1 percent the financial services is the only sector where the projected salary is less than the overall projection.