Employees In India May See Bigger Pay Rises Next Year. Here's Why

Paychecks could rise about 8% in the financial year starting April 2022, especially if authorities avert a third COVID-19 wave.

Employees in India will see bigger pay rises next fiscal year as firms expect to emerge from lockdowns and the supply of applicants lags demand, according to recruiters. Paychecks could rise about 8% in the financial year starting April 2022, especially if authorities avert a third wave of the virus, according to Michael Page and Aon Plc. That's higher than the 6%-8% surveys predicted for the current year. India has historically always reported Asia's highest increases -- and is expected to do so for at least the next two years -- but the magnitude has been declining in recent years after double-digit inflation earlier in the decade eased. Consumer prices have risen again during the pandemic, but have been mainly attributed to short-term supply issues. The forecasts are focused on the organized labor sector, which accounts for less than 20% of the workforce. Much of the informal labor isn't captured in surveys.