Nonetheless, there’s something for everyone. But if you’re looking for a change, Tech and Pharma are the sectors to go for.
National Budgets in 2021 aim to pave the route towards increasing production in the near future and narrowing down the COVID-syndrome of the economy. Consumer demand is likely to grow manifold in 2021 and, therefore, companies are all set to increase their production capacity once again. This should be good news for the working class yearning for a ray of hope after a never before experienced year of hardships. On the other hand, stunted in their careers since early 2020, white-collar employees can expect a promising pay hike in 2021.
- Expected pay hike in different industries
- Industries having promising year ahead
- Companies plan to ramp up hiring
- What should a government employee expect?
According to a survey by Aon, 87 percent of companies will reward their employees with pay hikes in 2021. In addition to pay hikes, majority of the companies look set to ramp up hiring of individuals with specialized skilled and expand workforce.
Watch: Pay Hike 2021 Survey by Aon
Expected Pay Hikes in 2021, by Industry
After an economically bleak year, industries like e-commerce, financial institutions, energy, and pharmaceuticals, will boom manifold and therefore, roll out pay hikes by 7.3 percent on average. According to Navneet Rattan, Director of Performance and Rewards Solutions practice for Aon India, the major reasons behind the tailwind in pay-hikes are retail spending (which was propelled by stimulus packages released by FM Nirmala Sitharaman in Q3 of 2020) and good rainfall. The major sign of Indian economy’s recovery was exhibited during the beginning of October 2020 when tax collection and car sales data reflected an optimistic rebound.
According to the survey:
- Employees working in the healthcare and pharma sector can expect the best monetary boost at 8 percent.
- FMCG firms plan to roll out hikes at 7.6 percent.
- Those working in the e-commerce sector can expect a pay hike of 7.5 percent.
- For IT sector employees, the compensation can increase by 7.3 percent this year.
- Bank employees and financial sector workforce can expect their paychecks to spike up by 6.8 percent.
- Employees working in professional services, retail sector, transport and distribution can expect pay hikes anywhere between 6 to 7 percent.
- Industrial and manufacturing units plan to reward manpower with an increment of 5.9 percent.
- Real estate employees can expect a 5.3 percent pay hike
Companies to pace up Hiring
Unemployment hit a record low not only in India but all over the world in 2020. However, according to Michael Page India’s Talent Trends 2021 Report, 53 percent of companies might soon ramp up their hiring operations. Unsurprisingly, technology and healthcare are forecasted to be the two major sectors. The two sectors didn’t stop operations even during the pandemic and, therefore, are expected to offer the majority chunk of employment opportunities this year as the pandemic continues.
74 percent of tech companies in India will ramp up their manpower by 14 percent. Firms are looking forward to adopting a hybrid working model, thereby providing remote employment to the candidate with the right set of skills. The survey involved 5,500 businesses and 21,000 employees to draw out a conclusion. Out of these 21,000 employees, 3500+ were CXOs and Directors.
What should Government Employees expect?
During the coronavirus outbreak, state employees saw their dearness allowance (DA) put on hold for the year 2020. To mitigate the COVID-induced economic crisis, all the government employees received DA at 17% in place of the usual 21%. Now that the economy is bullish again, DA could be rolled out at 28%. In addition to this, there’s speculation based on Budget 2021 about the increase in Leave Travel allowance for central government employees. Moreover, gratuity upper limit for both Central and state employees is also expected to increase from ₹20 lakh to ₹25 lakh.