Not much of a hike in store for private sector employees

The private sector employees may be offered lesser hike in their salaries this year with the employers striving to take a cautious approach in view of the global slowdown, according to a survey.

“Salary increases in India are projected to be 11.9 per cent (in 2012), marginally lower than the actual increase of 12.6 per cent in 2011,” said the 16th Annual India Salary Increase Survey conducted by a global human resource consulting and outsourcing, Aon Hewitt.

Although, the hike in salary is expected to see a marginal decline from 12.6 per cent in 2011, it would still remain highest in the world.

As compared to other countries, India is also expected to outpace Asia Pacific yet again with the highest salary increase in the region, followed by China and Philippines, projecting a 9.5 per cent and a 6.9 per cent salary increase in 2012, respectively, the survey said.

The front runner for this year’s salary increase is the pharmaceutical industry, with a projection of 13.3 per cent for 2012, riding high on a surging year-on-year growth with a compound annual growth rate (CAGR) of 11%, according to the survey.

Junior and middle management staff are still expected to get the highest increase for 2012. The survey forecast 12 per cent salary hike for junior management staff while 12 .3 per cent for middle management staff.