Private sector salaries logged slowest growth in a decade -Vineet Sachdev
It is also the first time in seven years that the share of salaries in sales revenue has come down.
Hit by decelerating sales growth, Indian companies are tightening spending on their wage bills. Private sector salaries recorded their worst growth in 10 years in fiscal year 2018-19. It was also the first time in seven years that the share of salaries in sales revenue came down.
These results are based on an HT analysis of the Prowess database compiled by the Centre for Monitoring Indian Economy (CMIE). Prowess has 4,953 companies which have sales and salary data for the 10 years ending 2018-19. Not all of these companies have data on number of employees. However, just 3,353 of these 4,953 companies employed 8.2 million people in 2018-19.
Nominal wage and sales revenue growth of these 4,953 companies was 6% and 9% in 2018-19. Adjusted for inflation (using the Consumer Price Index for Industrial Workers), these figures are 0.53% and 3% for salary and sales growth.
Please click here to read more.