Indian firms to give up to 12 percent pay hikes in 2010

New Delhi: Driven by rapid economic growth and rising demand for talent, Indian firms are expected to give the highest salary hikes of up to 12 percent in Asian region. According to a report by global HR consultancy Mercer, more firms are planning to grant pay hikes in 2010, as Asian economies continue to show signs of improvement.

Nearly 65 percent of the 233 firms that were surveyed in the 'Asia Executive Remuneration Snapshot Survey' across the region plan to offer base salary hikes for executives, compared with only 30 percent in 2009. "The highest salary increases of the year are being reported in India, where organisation heads and his/her direct reports can expect a 10 percent raise," the report stated. "Second-level executives are expected to get 12 percent. This is in part a symptom of fierce competition for executive talent coupled with fast-growing economy," it added.

In the entire Asian region, the median base salary increase for executives is expected to be around 4-5 percent in 2010, compared with 0-1.6 percent in 2009. But the figure varies substantially across Asia. Meanwhile, the number of firms planning to reduce base salaries for executives has declined considerably year-on-year to three per cent in 2010 from 11 percent last year. In China, direct and second-level executives can expect to receive a five percent raise, while company heads would receive only 1.5 percent.