Salaries of India Inc have been growing at over 10 per cent for the fifth quarter on the trot. In a study based, on the quarterly results of companies India Inc's wage bill for the quarter ended June 30 increased by 11.11 per cent, up marginally from 11.01 per cent in the quarter ended March 2005.
The study was based on 1,788 companies whose quarterly wage bill data was available for the quarter ended June 2005.
This rise, as one would expect, has increased the wage bill as a percentage of the total cost of production, which stood at 6.33 per cent of the total for the quarter ended December 2004 rose marginally higher to 6.38 per cent for the quarter ended December 2004, to finally scale the 6.72 per cent peak for second-quarter of the current fiscal.
The heartening news is that the manufacturing companies have begun to share profits with its employees in form of salary hike. In the last two consecutive quarters, the employees of manufacturing sector have pocketed over a 10 per cent rise in salaries and wages.
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No labour pangs this time around | ||||||
|
Quarter ended |
All Total |
Mfg |
IT |
Pharma |
CG |
Steel |
|
April-June 05 |
11.11 |
10.18 |
35.16 |
15.26 |
10.36 |
13.35 |
|
Jan-March 05 |
11.01 |
10.34 |
32.17 |
17.24 |
9.88 |
17.03 |
|
Oct-Dec 04 |
11.65 |
6.33 |
32.62 |
19.26 |
5.95 |
4.71 |
|
July-Sept 04 |
12.73 |
8.98 |
37.83 |
19.52 |
0.23 |
5.75 |
|
April-June 04 |
15.54 |
9.38 |
36.99 |
19.01 |
3.43 |
7.17 |
|
CG: Capital goods All figures in percentage | ||||||
As a result, cost of employees as a percentage of sales increased from 4.33 per cent in quarter ended March 2005 from 4.60 per cent in quarter ended June 2005.
Wage bill of the 1,526 companies in manufacturing sector increased by 10.18 per cent during the quarter ended June 2005, marginally down from the growth rate of 10.34 per cent during the quarter ended March 2005.
The wage bill of manufacturing sector increased 6.33 per cent in quarter ended December 2004, 8.98 per cent in quarter ended September 2004 and 9.38 per cent in the quarter ended June 2004.
In the manufacturing sector, capital goods companies -- which have been witnessing boom time in sales and profits --
The wage bill of capital goods sector increased 10.36 per cent in June 05 quarter, up from growth rate of 9.88 per cent in March 05 quarter. The wage bill increased was modest 5.95 per cent in December 04 quarter and a negligible 0.23 per cent September 04 quarter.
The study shows that growth rate in salaries and wages for India Inc employees as a whole has slowed down in the last three quarters largely on account of the banking sector.
The wage bill had increased by 15.54 per cent in the quarter ended June 2004, 12.73 per cent during the quarter ended September 2004 and 11.65 per cent during the quarter ended December 2004.
The exception has been the banking sector. The wage bills of the employees of the banking sector increased by 2.39 per cent in June 05 quarter and 3.99 per cent in March 05 quarter.
Information technology sector continued to be the good pay master with salaries and wages of IT employees growing at over 30 per cent. During the June 05 quarter, IT sector wage bill increased by 35.16 per cent, up from the growth of 32.17 per cent in March 05 quarter.
The pharmaceuticals sector, however, continued post lesser growth in salaries and wage in four consecutive quarters in a row. The wage bill of pharma sector increased by 15.26 per cent in June 05 quarter, down from a growth rate of 17.24 per cent in March 05 quarter.
