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February 20, 2007 19:08 IST
India Inc is increasingly forced to foot higher wage bills as the industry is facing a dearth of trained manpower with sectors like media and entertainment witnessing a salary escalation by 184 per cent, according to industry chamber Assocham.
As the economy has crossed over 9 per cent growth, the industry is facing the supply constraint of trained manpower, resulting in higher wages.
Besides, the industry's requirement for the headcount is increasing adding to their wage bill, Assocham president Venugoapl Dhoot said in a statement while releasing Assocham Eco Pulse Study on wage cost.
According to the study, based on financial results of companies for the third quarter of fiscal 2006-07, media and entertainment segment topped salary increase chart with an increase of 184 per cent.
The real estate sector followed with 171 per cent, infrastructure at 156 per cent, hotels at 107 per cent, IT at 57 per cent and finance at 56 per cent.
Companies proving financial services like Mahindra Finance, Max India and SKP securities witnessed 50 per cent raise in their salary cost whereas the pharma sector recorded an average wage expenditure increase of 34 per cent, it said.
Increasing cost of salaries in absolute terms and in share of total expenditure can be accounted to the rising aspirations of the young population of India, rising standard of living and shooting up of living cost due to inflation, the study said.
The study, which covered 160 companies, said most of the companies surveyed had raised their headcount thereby resulting into salaries occupying a striking component in the profit and loss account.
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