Double-digit pay hikes on cards in India

Double-digit pay hikes on cards in India

A study conducted across 91 organisations by Mercer India Monitor with a focus on HR budgets and inflation views that India Inc is expected to provide an average salary hike of 12.7 per cent in 2011 compared to 11.8 per cent in 2010.

However, salary hikes across sectors remain higher than last year, with the exception of pharmaceuticals, where the increase is estimated to be about 12.8 per cent in 2011, down from 13 per cent last year.

The automobiles sector will be providing an estimated 14 per cent hike, with IT & Telecom at the lower end of the spectrum at 11.8 per cent.

Other sectors like chemicals may see a 13.4 per cent salary increment, while consumer durables, financial services & insurance and manufacturing are likely to dole out hikes of 13.8 per cent, 12.6 per cent and 13.4 per cent respectively.

There is optimism displayed by 84 per cent respondents as they expect business performance to increase significantly in 2011. The survey also found that 94 per cent of the respondents were looking to ramp up recruitment activities, while only six per cent looking at maintaining the same level of headcount in 2011. About 67 per cent of the survey respondents indicated that they are hiring people for new positions as well as filling vacant positions.

Rising inflation also has had a impact on employee allowances with 43 per cent of the respondents saying that they are planning to help employees deal with rising costs.

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