Startup salaries have increased over 40 per cent in the last six months

Startup salaries have increased over 40 per cent in the last six months

Oct 20, 2021

By: kritti.bhalla@timesinternet.in

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RazorPay brings insights into FY22

Digital payments giant RazorPay has rolled out its latest analysis of how hiring and salary trends of the Indians startups were in the first half of financial year 2022.

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Where is the data from?

The company has relied on its neo-banking platform RazorPayX, which helps businesses manage their financial tasks and automate them.

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The depth of the data

The data shared by the company is from payroll data of over 25,000 employees across 360 startups in India from 15 sectors. These are the companies that use RazorPayX Payroll.

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Salary spends increased for Indian startups

Indian startups have witnessed a 43 percent increase in salary spend as the country recovers from the impact of COVID-19.

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2020 was the year for pay cuts

Several Indian startups had to resort to pay cuts and freeze all appraisals as the country suffered the pandemic. This seemed to be the way out for these companies to increase their lifeline and save up the money in the bank.

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Therefore, bonuses increased in 2021

RazorPay has noted that bonuses have increased by 23 percent between April to September 2021. Compared to last year, there is a 52 percent increase in organisations giving out bonuses.

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Some sectors are still recovering

However, certain sectors — real estate, hospitality and agritech — are still recovering from COVID-19 blues and were not able to give bonuses yet. They are gradually stabilising.

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More hiring, less firing

Nearly 57 percent of the organisations witnessed an increase in hiring, while 28 percent saw their headcount decrease in the last six months.

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What roles were in high demand?

During the last six months, employee headcount in entry-level roles grew by 14 percent. The demand for mid-level roles grew by 31 percent and mid-senior roles grew by 38 percent.

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Not just salaries, employee spends also increased

There has been a 50 percent increase in reimbursement to employees in the last six months, compared to October 2020 to March 2021.

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