The IT companies recorded a 12.5 per cent increase in compensation, whereas the BPO companies registered a bit lesser at 11.6 per cent.
Though there is a slow down, India is ranked highest in terms of salary increase for the year in the Asia-Pacific region.
The study titled Total Rewards Study noted BPO companies have started paying different kind of packages to their employees based on the locations.
Of the 100 companies surveyed, more than 50 per cent operated from multiple locations, of which 20 per cent effected salary differentiation in terms of location.
The study also found that there was an increasing emphasis on variable pay.
Almost 84 per cent of the companies have variable pay, of which 49 per cent made an assessment half-yearly and 20 per cent did it yearly.
Compensation hike was quite bullish, now it has become quite moderate and this is expected to further go down to below 10 per cent by 2010, said Nimal Kumar, industry leader
