MUMBAI: Salaries in the country are projected to increase by 10 per cent in 2019, the highest in the Asia Pacific region, according to a report.
While noting that the salaries had risen by the same quantum in 2018, it attributed the high salary increments compared to other countries in the region to the steady economic growth, progressive reforms and cautious optimism across sectors.
The global advisory, broking and solutions company Willis Towers Watson in its Q3 2018 Salary Budget Planning Report noted that the 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 the green shoots of recovery in the sector’s performance, increasing consumer confidence and purchasing power,” it said.
It noted that 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.
“MNCs that typically have KPO/BPO or manufacturing operations in India will likely see average salary increases around the 10 per cent mark, as in dollar terms this is not a significant increase to their cost of operations. However, Indian companies will likely see a lower salary increase which is more directly linked to their financial performance,” Sambhav Rakyan, data services practice leader, Asia Pacific, Willis Towers Watson said. (AGENCIES)