Indian companies are expected to dole out an average salary hike of 12% this fiscal year, but pay packets will be more performance-linked, a survey of 734 firms by global consultancy Mercer has found.
While the projected average pay hike for 2013-14 is unchanged from the last two fiscal years, there has been a decline in hiring intentions of companies for the next one year, the report said.
“Corporate sentiment is cautiously positive, though companies are adopting a wait-and-see policy,” said Muninder Anand, director, information solutions business, Mercer India.
The research also suggested that firms were likely to be more selective in rolling out increments. “Performance based pay and rewards will gain prominence in the appraisal cycle,” said Anand.