India Inc's average salary hike to be 9.6% this FY

India Inc's average salary hike to be 9.6% this FY

India Inc's average salary hike to be 9.6% this FY

Employees in India are expected to get an average salary hike of 9.6% this financial year, while key talent are likely to get as much as 14.7%, says a report.

"Salary hikes for financial year 2018-19 are expected to be in single digits at an industry average of 9.6%, based on data from over 270 organisations across 18 sectors who participated in our Annual Compensation Trends Survey 2018-19," said Vishalli Dongri, Partner and Head, People and Change Advisory Services, KPMG in India.

In financial year 2017-18, the average projected increment for the year 2017-18, was 9.7%, while the actual hike stood at 9.4%.

The report further noted that as many as 19.9% of participants saw attractive benefit offerings as one of the top three levers for drawing talent.

Moreover, almost 75% of organisations identify high potential employees and may offer them an average hike of 14.7%, the report noted.

"Organisations across sectors have stated that one of their top HR priorities for this year is re-looking at their performance management system framework to create a sharper focus on a pay differentiation for high performers," Dongri said.

The average variable pay projection has increased from 15.4% in 2017-18 to 15.7% in 2018-19, indicating that organisations are continuing to move towards paying for performance.

The highest variable pay as a percentage of CTC is reported by the financial services sector and the lowest by NGO sector.

The report offers insights into a variety of compensation trends and offers readers an important reference point on diverse aspects such as increments, benefits, employee attrition and how they are shaping up HR trends for 2018.

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