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This article is more than 3 month old.

Indian startups’ salary expenditure shot up by 43% between April and September: Razorpay report

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There has been a 52 percent increase in disbursed bonuses for organizations.

Indian startups’ salary expenditure shot up by 43% between April and September: Razorpay report
Indian startups have witnessed a hike in salary expenditure after it rose by 43 percent from April to September, as per a Razorpay report.
This comes after payroll management became the biggest expense that organizations incurred during the pandemic which served as an inflexion point for startups.
According to the report, edtech, fintech, and electronics are some of the sectors that witnessed a significant increase in their salary spending during the last six months. Moreover, some startups even increased the median salary of their employees by 7 percent this year.
There has been a 52 percent increase in disbursed bonuses for organizations. The amount paid out on bonuses increased by 23 percent during the past year as opposed to pay cuts and deferred bonuses last year. Real estate, hospitality and agritech are some of the sectors that were not able to give out bonuses, the findings showed.
The study also indicated that employee headcount increased by 30 percent in the last six months led by an increase in onboarding. At an individual organizational level, 57 percent saw an increase in hiring, and 28 percent saw a decrease in headcount, in the last six months. As per the findings, the e-commerce sector contributed to this growth in a major way, given that a lot of businesses and consumers have started to embrace digital.
During the last six months, employee headcount in entry-level roles grew by 14 percent and the data revealed that mid-level roles grew by 31 percent while mid-senior level roles saw a growth of 38 percent.
Apart from hiring, the reimbursements to employees also increased by 50 percent in the last six months and travel reimbursements increased by 54 percent after companies opened up its offices.
According to a recent industry survey, over 57 percent of businesses rely on manual efforts for payroll management. Organisations are forced to rethink how integrated HRM, payroll software and services can be used to increase efficiency and sustain their payroll practices, the report by RazorpayX Payroll, the business banking platform of Razorpay claimed.
Work-From-Home related allowances will increase. The report predicts an 80% rise in reimbursements and allowances related to internet connections to further enable remote and hybrid work regimes. Contractors, freelancers, and gig economy payments are on the rise among startups. Employee health and wellbeing will continue to remain a top priority and more startups will offer health insurance to cover employees and their dependents, the report added.
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