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Companies plan 15 percent pay hike this year
Monday, 12 April 2010, 15:51 IST
Bangalore: After a year of salary freeze and pay cuts, companies are planning to hike the salaries of employees, reveals a survey.
A dip-stick survey by Times of India (TOI) revealed that major firms are projecting up to a 15 percent hike in salaries in India this fiscal, reports Economic Times. Besides the hikes, there are a few other trends that would stand out. The wide-eyed obsession of Indian IT workers for Multi National Companies (MNC) is a thing of past and the focus is now on domestic companies. The performers are not going to lose out in the year of the turnaround.
"The growth drivers are domestic consumption and investment. Since the domestic market is insulated from global downturn, it is less volatile. Organisations across all sectors looking at better salary increase projections for 2010, when compared to actuals of 2009," said Sandeep Chaudhary, Leader of Hewitts Performance and Rewards Consulting practice in India.
According to a TeamLease survey, the services sector is providing a fillip to salary growth with an average six percent growth, contrasted with the rather low, sub-5 percent salary growth average for the manufacturing sector. Telecommunication, healthcare and IT in that order have been driving this growth. Energy, automobile and allied FMCG (Fast Moving Consumer Goods) are the only manufacturing sector industries to drive salary growth at five percent plus levels.
A survey by Hewitt Associates also projects salary hikes for 2010 in India at 10.6 percent, the highest in Asia-Pacific and up 60 percent from the actual increase of 6.6 percent in 2009. It further adds that Indian-owned companies are expected to outperform MNCs with a projected average increase of 11.4 percent as against a 10.2 percent by the latter.