Over the years, the ratio of salary increases to GDP growth rates in India has started to show signs of maturity and is merging with the global developed economies line (1.2X – 1.4X) while other emerging economies have a relatively higher salary increase to GDP ratio of 1.6X to 1.8X.
It pays to be a star in recent times. Literally. It pays higher to be a sought-after star. And it pays even higher to be a sought-after star with special skills.
That’s the short message that India Inc. is driving home as per Aon’s latest salary increase survey that interviewed more than 1000 companies. The industry gave an average salary increase of 9.5% during 2018 compared to 9.3% during 2017. Furthermore, as the Indian economy shows signs of recovery and a favorable outlook backed by improved business and economic outlook, high domestic demand and low inflation, the projections for 2019 look slightly better at 9.7%. But for high performers and critical talent, the increments could be 1.8-1.9 times, solidifying further the pay for performance principle that India Inc. has embraced.