India Inc to give 11% salary hike to employees in FY13
Employees across corporate India are expected to get a slightly lower average salary hike of 11 per cent in the current fiscal compared to 12-13 per cent last year as firms grapple with sluggish economic activity, experts have said.
As per a survey conducted by recruitment tendering platform MyHiringClub.Com, companies are expected to dole out an average pay hike of 11 for the year ended March 2013 lower than 12-13 per cent in the preceding fiscal.
While sectors like aviation could see average salary hike of seven per cent, the increments could be higher at 13 per cent for employees employed by retail companies.
"Current appraisal season salaries in India are expected to be in double digit. Increments have been conservative at 11 per cent attributable to the prevalent market sentiment.
"The increment percentages have dropped by 1-2 per cent across levels compared to last year," MyHiringClub.Com CEO Rajesh Kumar said.
Echoing a similar view, Apex HR Solution MD Vishnu Shankar said: "Around 11 per cent salary increment is expected in current fiscal. When making recommendations on salary increments, organisations take into account factors such as the uncertainty in the economical conditions."
Other experts attributed the major reason for lower salary increments to lesser corporate revenues compared to the year-ago period as economic growth in current fiscal is hit by stubbornly high inflation, lofty interest rates and a slowing global economy.
The survey, which was conducted among over 2,400 senior executives and 1,4500 employees, said that a majority of 84 per cent respondents plan to give salary hikes in the current fiscal. This number, is, however down three per cent compared to FY'12.
The telecom and engineering and manufacturing space might see eight per cent salary increment, followed by 10 per cent each in real estate, automobile, pharma and infrastructure sectors.
Besides, IT or IT-enabled, banking and finance and textile sectors could see average salary hikes of about 11 per cent each. Sectors like consumer durables and FMCG would see more than average salary hikes at 12 per cent each, the survey said.
"The economic growth in current fiscal is hit by inflation, interest rates, a slowing global economy...In current scenario, increments are also going to be affected," Sat-n-Merc Manpower Consultant Director Prachi Kumari said.
But employers want to give increments and bonus to maintain healthy atmosphere among their employees and retain them as well, said Kumar.