Indian companies are expected to give an average 11 per cent salary hike this fiscal as firms increase their strategic spending, says a survey.
As per the survey conducted jointly by MyHiringClub.com and FlikJobs.com, as much as 92 per cent companies said that they would dole out increments for their employees in the current appraisal season, while another 90 per cent firms are also likely to give bonuses.
The salary hike across industries would be of an average 11 per cent, while the average bonus will stand at 10 per cent, the survey revealed.
"Current appraisal season salaries and bonuses in India are expected in double digits. Increments have been conservative at 11 per cent and bonuses have been 10 per cent, attributable to the prevalent market sentiment," MyHiringClub.com CEO Rajesh Kumar said.
The quantum of the increment to be doled out this year by companies largely fall in the range of 5 per cent to 10 per cent and the bonus would lie between 5-20 per cent of the annual compensation of the employees, according to the survey.
"The increment and bonus percentage has increased by 1-2 per cent points across levels compared to last year, with maximum impact at top management level," Kumar added.
The survey covered 5,754 top executives of companies including CEOs, CFOs, head of finance and human resources as well as 22,300 employees.
"We witnessed early signs of resurgence in India, and this translated to improved strategic spending on employees - through salary increases, bonuses & incentives," Kumar said.
As per the findings, 32 per cent employees surveyed are expecting hike and bonus of 5-10 per cent, 25 per cent are expecting it between 10-15 per cent, 21 per cent up to 5 per cent and 12 per cent between 15-20 per cent hikes.
About 10 per cent employees are not expecting any bonus and salary increase, the survey said. Interestingly, a majority of the employees (86 per cent) are expecting a promotion this year.
Region-wise, 91 per cent firms in southern parts of the country are planning to give increment and bonus this year as compared to 89 per cent in north, 87 per cent in west and 85 per cent in the east.