India Inc may not go for 2009 salary hikes: Mercer

Anticipating a decline in its business performance in 2009, India Inc is likely to cut back on the planned salary increase in the coming year, according to global HR consultancy Mercer.

Anticipating a decline in its business performance in 2009, India Inc is likely to cut back on the planned salary increase in the coming year, while most firms want to avoid huge job cuts, a latest survey says.

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Majority of companies in the country are trying to be selective in planning the workforce, compensation and benefit cuts for 2009, while they anticipate a decline in their company's business performance next year, according to global HR consultancy Mercer.

The survey revealed that as much as 83 per cent of companies expect salary increases in the coming year to be lower than originally planned by them. The responses indicate that the companies are planning to look closely at holding down the level of compensation increases in 2009.

However, only 19 per cent of survey respondents are considering the more drastic step of freezing 2009 salaries at 2008 figures.

The results for companies in India generally match survey findings from other parts of the world. In China, Australia, the UK and the US as well between 20 and 30 per cent respondents believe that the 2009 bonus payout would be reduced from those originally planned.