New Delhi: Workers' expectations around the pay rises this year have skyrocketed in India, with 90 percent of people interviewed looking for a hike in salary, a report said on Monday.
In India, 90 percent of workers interviewed expect a pay rise this year and on average, close to 20 percent of the employees surveyed are anticipating an increase of 4-6 percent, followed by 19 percent anticipating a 10-12 percent hike, ADP Research Institute's - People at Work 2023: A Global Workforce View - the report revealed. (Also Read: India Likely To Move To Upper-Middle-Income Category By 2047: Debroy)
The report revealed that in India, 78 percent of workers received a pay rise last year, and the hikes averaged 4-6 percent. (Also Read: SBI FD vs Post Office Fixed Deposits: Which One Should You Choose?)
This year, even if there is an absence of salary hike in the country, a substantial 65 percent 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 percent) were given a pay rise last year averaging at 6.4 percent.
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 percent) believe they're underpaid for their job, it added.
