Double-digit pay hikes on cards in India: survey

Double-digit salary increases and aggressive recruiting by companies will continue across all sectors , says a survey conducted by the consulting firm, Mercer.

According to the Mercer India Monitor, a study  conducted across 91 organisations focussing on HR budgets and inflation, India Inc is expected to provide an average salary hike of 12.7% in 2011 compared to 11.8% in 2010.

Salary hikes across sectors, however , remain higher than last year, with the exception of pharmaceuticals , where the increase is estimated to be about 12.8% in 2011, down from 13% last year. Th automobiles sector will be providing an estimated 14%  hike, with IT & Telecom at the lower end of the spectrum, with 11.8%. Other sectors like chemicals may see a 13.4% salary increment, while consumer durables , financial services & insurance and manufacturing are likely to dole out hikes of 13.8% , 12.6% and 13.4% respectively.

“On the backdrop of a  growing economy, overall expectation on business performance is still quite positive with various industry sectors experiencing good growth. This trend explains the return of the war for talent with an increase in salary increments, hiring and an increased proportion of employee salaries in the HR Budgets in 2011. Recruitment and training budgets are also expected to increase in proportion this year,” said Shamita Chatterjee, Mercer’s India Business Leader for Information Product Solutions.