look news india
Private Employee Salary Hike: The recently released GDP figures for July to September have increased the concern of the Central Government. GDP in this quarter was only 5.4 percent. In this regard, policy makers have expressed concern that despite four times increase in the profits of companies in the last four years, there has been no significant increase in the salaries of employees.
There is a lot of debate going on in corporate boardrooms and key economic ministries over the salaries of private employees. The debate is because a report prepared for the government by FICCI and Quess Corp Limited has revealed shocking facts regarding the profits of private companies and the salaries of employees.
How much did the salaries of private employees increase?
A report by FICCI and Quess Corp found that the compounded wage growth rate for six sector engineering, manufacturing, process and infrastructure (EMPI) companies was 0.8 per cent between 2019 and 2023, while the wage growth rate for FMCG companies was only 5.4 per cent. Was.
Salaries nominal compared to inflation
The condition of salaried employees is continuously worsening. Salaried employees, especially those working in private companies, are not getting adequate financial protection against the burden of inflation. Government employees get the benefit of increase in allowances based on inflation, whereas corporate companies, despite earning huge profits, do not increase the salaries of employees citing cost and economic conditions.
There is a need for improvement by focusing on the industry
Chief Economic Advisor V. Ananth Nageswaran, in his two addresses at corporate conferences, referred to the FICCI-QUES report and suggested that the government needs to focus on Indian industry and make major changes to address the exploitation in it . Government sources said one reason for low consumption in urban areas is poor income levels. Consumption has picked up with post-Covid demand, but slow wage growth is impacting economic activity.
Inflation increased by 5 percent and wages increased by 2 to 3 percent.
During 2019-23, the salary of private sector employees working in BFI i.e. banking, financial services, insurance sector has increased by 2.8 percent. Apart from this, 3.7 percent in retail sector; 4 percent in IT; And logistics grew by 4.2 percent, which is a negative sign in the context of 5-year inflation data.
Profit of private sector companies quadrupled
The profitability of private sector companies has also increased due to the attractive surge in demand and consumption after the Corona epidemic. The profits of the Indian corporate sector have quadrupled in the last four years. However, its benefits have not reached the bottom line. Economic advisors have expressed fear of increasing inequality on this issue.