This April, expect a double-digit hike in your pay cheque, but not much above what you got last year.
Employees across sectors are expected to get an average salary hike of 10.6% this year, a marginal improvement over a 10% raise last year, according to a survey by US-based human capital and management consultancy Aon Hewitt.
Real estate, life sciences, engineering services, chemicals, information technology and media are likely to dole out a salary hike of 12.2-10.7%, higher than the market average. Sectors including telecom, transport, hospitality, retail and financial institutions represent the lower end of projections at 9.4-9.9%.
According to the survey that covered over 580 companies, seven out of 10 organisations in India expect an improvement in business outlook this year.
“Companies reflect positive yet cautious sentiments towards salary raises,” said Anandorup Ghose, rewards consulting practice leader, Aon Hewitt India. “They are not going for aggressive pay increases. Increasing salaries mean increasing fixed costs. I think people need to see more actual activity to be able to increase their fixed costs,” he added.
Another survey by global management consultancy Hay Group expects salaries to rise 11.3% across job roles in 2015. “The economic outlook is positive and organisations believe that the stable government will give a spurt to their business prospects,” said Hemant Upadhyay, managing consultant and leader, executive rewards practice, Hay Group India.
While there is a steady trend towards greater performance-based pay and expansion of benefits’ basket, a study by American global professional services company, Towers Watson, found that salary is the top reason for an employee to stay in an organisation.
Among all leading Asia-Pacific nations, India continues to lead in salary increases and also tops the chart for highest inflation-adjusted pay hikes, Aon Hewitt said. “Though the projected salary increase number shows a subtle improvement over salary increases in the last three years, however it does not yet show a complete resurgence,” it added.