Average Indian Pay Hike stands at 10.3% in 2013
Employees in India are expected to get an average salary hike of just 10.3 per cent this year, the lowest in a decade, as the industries are being affected by country’s slow economy. According to the Annual Salary Increase Survey by HR consultancy firm Aon Hewitt, the average salary increase reflected 5% growth expectations in India.
The survey showed that differences will be found in salary hike across sectors. The financial services, technology and outsourcing, which had recorded to offer employment with good package, would suffer in 2013. However, consumer & industrial sectors, which were dumped in the recent past, may increase salary for its employees.
The corporate India is expected to offer its employees an average salary rise of just 10.3 per cent for 2013, which might further be revised downwards and may touch 9-9.5 per cent when the actual figure comes out, Aon Hewitt India partner for talent and rewards, Sandeep Chaudhary, said.
Though industries and stock markets are rising upwards, the low salary would not satisfy the employees in various sectors amidst inflation and slow economy.
The key talent (Hi-Potentials, Hi-Performers & Critical Talent) is projected to get an average increase of 14.1%. Aon Hewitt added that the cost consciousness and performance orientation will be the key themes this year.
While pharmaceutical industry is projected to increase the salary at 13.5% for 2013, the highest amongst all sectors, the Infrastructure sector is projecting relatively lower salary increase at 6.1%. The financial industry’s projection stands at 8% with securities closing at 6.6%, banking at 8%, and life insurance at 8.7%. The employees of telecom sector will continue to get less packages with projections for 2013 at 9.6%.
IT service organisations projected a conservative salary increase of 9.6%. The Indian IT industries projected an increase of 10.1% for 2013 amidst global uncertainty. Similarly, the BFSI captives and other captives are projecting salary increase at 10.2%.
The survey was conducted on over 500 organisations representing 20 primary and 30 secondary industry sectors. The study measured actual and projected salary increases, and compensation practices for five specific job categories, namely top/senior management, middle management, junior manager/professional/ supervisor, general staff, and manual workforce. The data was collected between December 2012 and January 2013.