IT, HR and ecommerce employees will get the biggest pay hike next year

• According to the latest report by AON, 98.9% companies in India intend to give a salary hike to its employees in 2022.
• The percentage of salary hike given to employees was 8.8% this year, it is projected to increase to 9.4% in 2022.
• Employees with upgraded technical and digital skills are said to be the most successful in 2021.

It is projected that 98.9% companies in India will give or intend to give a salary increment to its employees in 2022, according to the latest report by professional services firm AON. This is a jump compared to this year, which saw 97.5% of Indian firms giving a salary hike to its employees.

The average percentage of salary increment given to the employees this year was 8.8%. However, the report has forecast an increase to 9.4% in the year 2022.

The COVID-19 pandemic may have disrupted people’s lives, but companies say that it has definitely not hampered productivity throughout these 18 months, as per AON. The survey also reveals that around 45.4% of companies saw an improvement in their overall business outlook. This percentage is also projected to further increase to 61.9% in 2022. Therefore, most of the companies decided to give a pay raise and bonuses to its employees.

“Despite another wave of COVID-19 hitting the nation hard, Indian organisations have displayed resilience in riding through the tough times. While pandemic risk in India continues, the business sentiment and salary projections for 2022 tell us that employers are building for growth and are much better prepared than in 2020,” said Roopank Chaudhary, partner at AON’s human capital business in a press release.

Expected salary increment across various sectors:


The graph clearly shows that information technology (IT)/hi-tech, professional services and ecommerce are the top three sectors with the highest salary increase in 2022 for India.

As the hospitality sector was one of the most affected sectors during the pandemic and is still recovering from the losses, it is one of the sectors with least salary increments projected for 2022. Other than the hospitality sector, engineering services and energy sector will have low salary increments for 2022.

Another notable aspect is that the number of organisations choosing not to give an increment may also decline from 2.5% to 1.1%, which means that there will be very few companies that might not give an increment next year, according to the report.

Chaudhary further said that the employees with digital and technological skills are the “most successful” in 2021. The salary increment trend was seen mostly for the employees who had updated skills according to the trend going on in the market.

He also added, “We expect that this trend will intensify over time, as organisations have an increased need for this talent to transform their business models and build resilient workforces.”

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