MUMBAI- Workers’ expectations around the pay rises this year have skyrocketed in India, with 90 per cent of people interviewed are looking for a hike in salary, a report said on Monday.
In India, 90 per cent of workers interviewed expect a pay rise this year and on average, close to 20 per cent of the employees surveyed are anticipating an increase of 4-6 per cent, followed by 19 per cent anticipating a 10-12 per cent hike, ADP Research Institute’s – People at Work 2023: A Global Workforce View – report revealed.
The report revealed that in India, 78 per cent of workers received a pay rise last year, and the hikes averaged 4-6 per cent.
This year, even if there is an absence of salary hike in the country, a substantial 65 per cent of employees express a desire for some form of merit bonus, paid holidays or travel compensation, it stated.
“Getting a pay rise has become increasingly important, particularly for those in lower- and middle-income brackets. With the rising cost of living, disposable incomes have been affected, and even higher earners are feeling the pressure. People are struggling to afford essentials and are unable to indulge in luxuries due to the financial constraints caused by increasing interest rates, higher rents, and food costs. Though inflation may have reached its peak, it appears that it will take a while for it to return to more manageable levels,” ADP India Managing Director Rahul Goyal noted.
The report, People at Work 2023: A Global Workforce View, by US-headquartered human capital management (HCM) solutions provider ADP is based on a survey among 32,000 workers in 17 countries, including 2,000 employees in India.
Goyal further said that employers have a difficult task weighing up the clamour for higher pay against their own challenges around rising costs and tightening profit margins.
He said, “Workers are confident that they will get a pay rise from their current company, but if not, there’s a strong sense that they’ll be able to secure one by moving jobs. As the recent spate of strikes in many countries across multiple industries has shown, many workers feel enough is enough. They are willing to take increasingly drastic steps by staging walk-outs to ensure they get their point across and force a suitable settlement,” he stated.
Employers who aren’t in a financial position to offer decent pay rises might have to think creatively about how to appease staff in other ways such as via offering greater flexibility or other benefits, Goyal added.
The report further revealed that demands for higher pay come after around six in 10 workers (62 per cent) were given a pay rise last year averaging at 6.4 per cent.
The findings come amid the ongoing cost of living crisis and as workers in many countries demonstrate a willingness to take industrial action in order to force their employers to be more generous on pay and conditions, it said.
Globally, more than four in 10 workers (44 per cent) believe they’re underpaid for their job, it added. (PTI)