Salary Increment Sentiment 2021

Published on: February 23, 2021

Insights from a Nationwide Survey on Workforce Sentiment During Crisis

Understanding Compensation Trends Across Indian and Multinational Companies

Why This Report Matters

The year 2021 marked a critical turning point for workforce compensation strategies in India. Following the economic disruptions of 2020, organizations faced the challenge of balancing recovery with employee expectations. The Salary Report 2021 by HRhelpdesk® captures the sentiment, strategy, and structure behind salary increments, promotions, and bonuses across 628 companies, offering a comprehensive view of how businesses planned to reward their workforce in the new financial year.

This report is essential for HR leaders, compensation planners, and business heads seeking to benchmark their practices, understand market trends, and align their people strategy with industry sentiment.

Survey Overview

  • Survey Period: January 15 – February 12, 2021
  • Methodology: Online sentiment survey (no interviews)
  • Total Companies Surveyed: 628

Company Types

  • Local: Indian-owned and operated
  • MNCs: Foreign-owned, joint ventures, or subsidiaries

Company Sizes

  • Less than 100 employees
  • 101 to 500 employees
  • More than 500 employees

Key Findings

Salary Increments

  • Over 80% of companies across all sizes and ownership types planned to offer salary increments starting April 2021.
  • Smaller companies (<100 employees) showed a higher tendency to offer aggressive increments, with 25–30% of them planning hikes above 15%.
  • MNCs with >500 employees were the most generous, with 23.1% offering increments above 15%.

Promotions

  • More than 80% of companies with over 100 employees planned to offer promotions.
  • Smaller companies were more conservative, with only 54–59% showing intent.
  • Promotion criteria split:
    • Half planned to promote all qualifying employees
    • Half preferred a subdued or selective approach

Increment on Promotion

  • Local companies leaned toward offering standard increments even for promotions.
  • MNCs, especially larger ones, used promotions as a performance differentiation tool, with many offering at least 5% more than standard increments.

Non-Mandatory Bonuses

  • Smaller companies were more likely to offer non-guaranteed bonuses (performance pay, incentives).
  • Larger companies, especially MNCs, were more cautious, with only 46–54% showing positive sentiment.
  • Bonus amounts varied, but both local and MNC companies focused on 8% or >15% as common benchmarks.

Compensation Strategy & Influencing Factors

What Drives Increment Decisions?

  • Local companies prioritized:
    • 1. Company profit
    • 2. Competitive salary benchmarks
  • MNCs emphasized:

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Mandeep Singh