Double-digit raise this year
If you are an employee of corporate India, expect an average pay hike of about 13% this April and chances are the next five years, too, will bring double-digit raises.
Indian salaries will rise by 12-15% a year for the next five years, said global human resources firm Aon Hewitt on Tuesday, unveiling results of its annual survey that compares nations and sectors for pay increases and staff movements.
Some 531 organisations were sampled for the survey that last year had forecast pay increases of 11.7%, which came after a dip of 6.3% in 2009 when the country was hit by a slowdown.
“Indian companies have been doing quite well over the last couple of quarters and the salary hike projections are a reflection of this fact,” said Nitin Sethi, India practice leader at Aon Hewitt. At 12.9%, the forecast average Indian pay increase is higher than China’s 9%.Engineering, consumer goods and automobile sectors are expected to top the hike chart — in the 14-14.4% range. IT and IT-enabled services, once the best-paying employers, are down at 12%, though on a rebound.
Inflation — hovering close to double-digit levels for most of the last year — played a major role in influencing employers, the survey shows.