There has been a wave of layoffs or cutbacks in several sectors. Automobiles, hospitality, BPO, ITES, construction and real estate were the worst affected by the disruptions during COVID-19, witnessing layoffs and huge salary cuts of up to 28% during the pandemic.
TeamLease HRTech CEO Sumit Sabharwal said salary level in certain sectors is expected to be restored to the pre-pandemic mark by the end of this financial year aided by the recovery in economic activities.
“After analysis of data from our client base, we found that the workers in the formal sector witnessed a 3.6 per cent wage cut while informal workers experienced a much sharper fall at 22.6 per cent. The pandemic has shown us the importance of the format sector in the economy,” Sabharwal was quoted as saying by the news agency PTI.
He said, as normalcy returned and the economy gradually recovered companies began giving increments that helped in narrowing the salary gap to the 2019 level.
However, there is still a little gap of around 7-14 per cent from the 2019 wage level in certain sectors. “We expect the recovery to reach the 2019 level by the end of this financial year,” he added.