Indian employees receive highest pay hike in 2007: Survey
By siliconindia   |   Friday, 22 February 2008, 01:01 IST
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New Delhi: In a highest hike across 14 Asia-Pacific countries, Indian employees received an average salary increase of 15.1 percent in 2007, says global human resources services company Hewitt Associates, though the firm said salary hikes would gradually decrease and stabilize in the range of nine to ten percent by 2012. The 12th annual 'Asia-Pacific Salary Increase Survey' conducted by Hewitt Associates involved over 550 companies across sectors. According to Hewitt Associates, 2008 would see a similar increase of around 15.2 percent, marking the fifth consecutive year of double-digit growth of salaries in India. In the last survey conducted for Jan-Oct 2007, India was placed second at 14.8 percent, next only to Sri Lanka. In the management levels, junior managers are expected to receive a salary hike of 15.5 percent this year, recording the highest salary increase for eight consecutive years. In the sector-wise classification, real estate is likely to witness the highest salary rise at around 25 percent in 2008 in India, even ahead of the retail and telecommunication sector, the survey said. In 2007, this sector had seen a salary rise of 25.2 percent. Meanwhile, making a further dip from 14.1 percent in 2007, the Information Technology-enabled Services sector would record the lowest pay hike of 14 percent in 2008, the survey said. "Salary increases in the technology and outsourcing sectors have stabilized since 2004. They have been stabilizing between 13 and 14 percent, which is not a variation of concern. This is primarily because the salary levels in these two industries are already fairly competitive," said Sandeep Chaudhary, India business leader, Hewitt Associates. The survey noted external equity of compensation and role stagnation as main reasons for attrition.

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