Average pay hikes to touch 10.7% this fiscal, says survey

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The Indian industry is projected to dole out an average salary increase of 10.7 per cent this fiscal with junior management level employees set to get maximum pay hikes, says a survey.

In the current financial year, the increase in average salary as well as variable pay is expected to be higher than last fiscal's.

Global consultancy firm Deloitte's Annual Compensation & Benefits Trends Survey India for 2015-16 said pharma sector would see the highest projected average increment at 12.1 per cent whereas the lowest rise is anticipated in the retail sector at 9.4 per cent.

"The average salary increment across sectors is projected at 10.7 per cent in FY 2016, which is 0.4 per centage points higher than previous FY 2015 (10.3 per cent)," it said.

The highest projected increments across industries are at the junior management level at 11 per cent.

Across 18 sectors, 250 organisations participated in the survey.

According to the survey, average variable pay is expected to be 17.4 per cent this fiscal compared to the year-ago period when it stood at 17 per cent.

When it comes to sectors, Banking, Financial Services and Insurance (BFSI) is expected to see the highest average variable pay at 19.4 per cent whereas the lowest is expected to be in logistics sector at 15.6 per cent.

The survey said that "better pay, better career opportunities and need for work life balance" have emerged as top reasons for attrition across industries.

In 2014-15, the highest attrition of 21.9 per cent was seen in the ITeS (Information Technology enabled Services) sector.

To bring down attrition and ensure retention of employees, the survey said companies adopt various measures including long term incentive plans.

Other such steps include "strong performance based variable pay, and monetary/non monetary recognition awards," it added.