Source | The Economic Times : By Sreeradha Basu
MUMBAI: This appraisal season, wages across industries are likely to increase by 9.5%, signaling a drop from 10.3% last year, according to Aon Hewitt’s 21st Annual India Salary Increase Survey that covered more than 1,000 companies across the country.
However, India’s biggest companies are likely to increase pay at the slowest pace since the 2009 global recession.
According to exclusive data from Aon Hewitt’s Survey, the top 100 companies based on employer brand recall and size, will likely give average pay increases of 8.2%, a rate last seen in 2009. This projected rate compares with 9.5% last year.
With Corporate India’s compensation budgets gradually declining since 2013, the days of 11-12% pay hikes for average performers may soon become a thing of the past. Salary increments on average are expected to settle in the 9.5-10% range in the coming years.
“It had to happen. Companies are becoming conscious of how much they pay. With lower inflation rates in the economy, they cannot keep on paying the kind of increments they have given out in the past,” says Anandorup Ghose, partner at Aon Hewitt India.
The pay-for-performance agenda continues to gain ground, with top performers across companies likely to bag 1.8X the average increments. For large companies, it will be 1.9X