Most experts agree that scheduled pay increases may be pushed back and re-considered upon with ‘retrospective effect'
Employees across sectors may have to brace for comparatively lower increments and bonuses as businesses reel under the impact of the coronavirus outbreak.
As social immobility suspends daily work patterns, the overall approach by employers seems to be of 'wait and watch', especially in sectors such as aviation, hospitality, travel and tourism, experts told The Economic Times.
Apart from the travel and associated industries, sectors that depend heavily on imports from China and asset management companies are vulnerable, while pharmaceutical companies and professional service companies are expected to remain unaffected, the report said.
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Delay in increments by at least quarter is likely as employers anticipate a tough environment and would want to monitor the situation before making a call, Arvind Usretay, director, rewards of risk management advisory Willis Towers Watson told the paper. The current scenario may thus lead to conservative bonus payouts at later dates, he added.
Also Read: IT cos may block pay hike, slash bonus due to coronavirus pandemic
Most experts agree that scheduled pay increases may be pushed back and re-considered upon with ‘retrospective effect.’
Ajay Shah, vice president of recruitment services, TeamLease told the paper the average hike for employees in FY20 would now be much lower than the expected 9.1 percent.Time to show-off your poker skills and win Rs.25 lakhs with no investment. Register Now!
