NNA survey: Japan firms in India eye average 8% wage hike in 2020, against 9.4% last year
NEW DELHI, NNA - Japanese firms operating in India are poised to curve wage increase this year as nearly 90 percent of them are encountering rising labor costs, an annual NNA survey found.
Japanese subsidiaries and affiliates in the South Asian country are planning to offer an average 8.0 percent wage hike this year, against an actual increase of 9.4 percent in 2019, according to the survey conducted from August to September.
Among 72 companies – 35 manufacturers and 37 non-manufacturers – 65.3 percent will raise salaries this year, with 28 firms planning to implement them in April.
Those in the sectors of machinery and its parts, logistics and warehouse, construction and property are considering better rate hikes at a 9.5 percent or higher this year, the poll found.
Of all the surveyed firms, 62.5 percent is ready to offer bonuses with an average of 1.1 months’ worth of salary in 2020, according to the compiled data by NNA mainly in the greater capital region as well as southern and western India.
Meanwhile, 87.5 percent of the respondents felt labor costs are rising, and 50 companies intend to mitigate the impact by boosting revenues while 43 firms are stepping up efforts to cut costs in the pursuit of operational efficiency.