India Inc may give up to 12 pc salary hike in 2010-11: E&Y
India Inc may give salary hikes in the range of 9-12 per cent in the coming financial year to retain talent amid revival in the job market, according to consultancy Ernst and Young said.business Updated: Mar 25, 2010 17:08 IST
India Inc may give salary hikes in the range of 9-12 per cent in the coming financial year to retain talent amid revival in the job market, according to consultancy Ernst and Young said.
Most companies are expecting higher attrition levels over the next few months on jobs coming back into the economy resulting in salary hikes being used as a tool to retain talent.
"At an overall level, extraordinary jump in increments do not seem probable and the average salary increase is likely to be in the range of 9-12 per cent," Ernst & Young partner and national head (People & Organisation) N S Rajan told PTI.
However, Rajan cautioned that along with the pay hikes, companies are likely to follow a cautious approach of keeping tight monitoring and controlling of any additional salary costs.
In spite of excitement around economic recovery, average pay hikes across sectors would be slightly conservative.
"While on one hand pharma and FMCG companies will lead the space with increments in the range of 10-13 per cent, the IT and technology companies will give reasonable increments close to eight per cent," Rajan added.
Moreover, the telecom sector is expected to give above average salary hikes in the range of 12-15 per cent.