India to see 7.25 percent salary increase this year
By siliconindia   |   Tuesday, 07 April 2009, 16:01 IST   |    6 Comments
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India to see 7.25 percent salary increase this year
New Delhi: Even as the recession taking toll on jobs, salaries and other benefits of the employees, the country may witness a moderate salary increase of 7.25 percent this year. This is against the double digit growth for many years, finds global human resource consultancy firm Hay Group. According to the Hay Group report, overall, the picture for India has deteriorated. With large numbers of organizations freezing pay, and predictions overall of median pay inflation of around 7.25 percent after years of double-digit growth, there is evidence that organizations are having to tighten their belts. The biggest concern for Indian companies is still the attraction and retention of talent as opposed to managing downsizing The report further said that Indian organizations would continue to invest in competitive salaries for high performing and high potential employees, but will also need to get more creative in developing a work culture and leadership style that enables them to become employers of choice without having to resort to the check-book. After witnessing double-digit growth in wages for some years, fast growing economies like India and China are now predicting salary increase of less than half of 2007 levels. On the salary outlook in the public sector, the report said, "pay in the public sector remains relatively modest, even after implementing pay reviews, but increases of this magnitude will clearly skew Indian pay market data for some time to come."

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