- Indian companies to raise salaries by 2021
- Salaries could go up to 7.7 per cent
- This is the highest rate in the BRIC countries during the Kovid crisis
Ion PLC, an international professional services company, has issued hints in this regard.
According to the survey, 88 percent of companies plan to raise their salaries by 2021. By 2020, 75 percent of companies were in favor of a pay rise.
The study report analyzed data from 1,200 companies from more than 20 industries. The new labor code may bring about significant changes in this area
In the current context of uncertainty and so on, there are indications that further pay rises are unlikely. The employment definition under the new Labor Code may force employers to spend higher amounts on benefits such as gratuity, leave encashment and provident fund.
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With the introduction of the new Labor Code, the pay rise is likely to decrease as the pay rise comes into effect. This is in a situation where companies are also being forced to pay higher provident fund contributions.
According to the survey, e-commerce, venture capital, IT-IT-based sectors and life sciences are the areas where the highest salary increase is expected. Meanwhile, companies in the hospitality, restaurant, real estate, infrastructure and engineering sectors are likely to see lower pay rises. At the same time, it is noteworthy that India has the highest wage increase compared to the BRIC countries of Brazil, Russia and China.