Hewitt Associates, a human resource (HR) and consultancy firm, has estimated an average salary hike in India for year 2009 at 8.2% - highest in Asia and amongst the top in world.
This salary growth is smaller than last year’s average salary increment (13.3%) but in the wake of the global turmoil and worsening recession, the figure portrays a healthy sign for Indian employees as the rate of inflation continues to go down.
India may be ahead to China, the fastest growing nation, and Japan, the strongest economic power in Asia, in terms of salary hike this year as there were an expectation of 8% and 2.3% respective salary growth; while in US, the expected salary hike may be 3.2% only, survey reported.
Despite the gloomy economic condition, 60 per cent companies in India are still considering to recruit new employees and nine out of 10 companies are still giving promotions to deserving candidates, survey added.
Only 16% companies in India were considering to cost cutting, while 55% of companies in US, 30.6% in China, 32% in Australia, 20% in Thailand and 17% in Japan were considering laying off their employees to confront recession.
According to the survey, pharmaceuticals, telecom, consumer durables and FMCG sectors – the sectors that cater directly to consumers – may see the highest salary growth in the range of 11 to 13 percent while sectors like retail, Information Technology (IT), banking and finance sectors may see the lowest salary hikes in the range of 5-6 per cent only.
In terms of designation, the junior manager of the company or the supervisor or equivalent employee may get higher salary rise as against the top and middle level managers, revealed the survey.
In a move of salary hike this year, most of the firms were expected to introduce performance-based incentive plans while the investment in talents would continue, survey reported.
The survey was conducted on 480 Indian companies over December 2008 and January 2009, said Hewitt. This is the first time since 2002 that India is likely to see single-digit salary increment, added Hewitt.
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