Never mind inflation. India is still the hottest job market in the Asia-Pacific region, with salaries in key sectors expected to rise by 14.5 per cent on an average in the new financial year starting next month, according to a survey by global consulting firm Hewitt Associates.
That is just a notch above the 14.4 per cent average rise in 2006, but will mark the fifth year of double-digit increases.
Banking and finance, insurance, hospitality, telecommunications and engineering sectors are expected to fuel the northward trend of salaries in 2007, while IT and IT-enabled service sectors are relatively less hot.
The health-care, pharmaceutical and electronic/electrical industries are among those expected to see the lowest raises among the sectors covered.
Banking and finance has displaced insurance as the hottest category, with an anticipated increase of 16.5 per cent in salaries, although down from 17 per cent in 2006.
Insurance employees are expected to get 16.1 per cent raises, compared to 17.1 per cent last year. Telecom is hotter at 15.7 per cent compared 15.1 per cent last year.
Notably, IT and IT-enabled services — like business process outsourcing and call centres — have been edged out of the top-five category by hospitality and restaurants where the expected rise in salaries is 15.5 per cent.
Locally owned organisations are awarding higher salary increases than multinationals in India. In 2006, local companies saw an overall salary increase of 14.9 per cent while foreign-owned organisations raised their salary bill by 14.3 per cent.