Corporate India to offer double digit hikes and bonuses

Tuesday, 02 February 2010, 14:44 IST   |    5 Comments
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Corporate India to offer double digit hikes and bonuses
New Delhi: Post recession as the economy is gradually recovering, salaries across corporate India are expected to rise at a healthy pace this year, reports Economic Times. As per current trends, employees across sectors may get moderate to fat increments and salary hikes in the 9-18 percent range this year around. Pay-cuts, layoffs and heightened austerity measures are becoming a thing of the past, as it gets replaced with a buzz of promising bonuses. Key executives in companies belonging to telecom, retail, FMCG, automobiles and consumer durables are already expecting a healthy hike for employees. "If we take a realistic look on expected salary hikes this year, it is surely going to be around 9-9.5 percent across sectors," said Sandeep Chaudhary, Performance and Rewards Consulting Practice Leader at Hewitt Associates. "Companies will focus on a more realistic approach towards salaries, as well as hiring." One of the first sectors to benefit from the increase in demand is the auto industry. With competition increasing and a slew of launches being planned, companies are leaving nothing to chance. Market leader Maruti Suzuki is looking at a 10-15 percent hike, up from last year's 8-10 percent. It also plans an average bonus payout of 100 percent across levels like last year. When it comes to bonuses, there is nothing to beat what mobile telcos have been offering. Companies like Bharti Airtel, had offered its junior-level employees (with 2-3 years experience) an average of 140-150 percent bonus last year, while people at the senior level (with 15-20 years experience) received an average bonus of 125 percent. The Indian IT sector, which contributes nearly five percent to the GDP, is also holding out a similar promise for its employees. Companies such as Cognizant,SAP, VMware, Mahindra Satyam, TCS, Wipro, Infosys and Genpact are likely to offer a hike of 7-15 percent at the operational level and 12-18 percent at the senior levels. Wipro has hiked employee salaries by 8-12 percent, while at Satyam, employees can expect a salary hike of 8-20 percent. "We hope to have a salary hike in April. We have already given 8% hike in October last year," said Nandita Gurjar, Senior Vice President, HR, Infosys.