Uptick in economy likely to reflect in salary hikes: 4 top points

Written by ENS Economic Bureau | New Delhi | Updated: Sep 30 2014, 13:54pm hrs
Rising investor sentiment and business confidence on the back of a stable government is expected to result in an increase in economic activity, job opportunities and growth in salaries over the next year. According to a Towers Watson survey across 20 Asian countries, while salaries in Asia-Pacific are expected to grow by an average of 7% in the year ending March 2015, the hike in India is expected to around 10.8%, which is among the highest. However, salary hikes in India after accounting for inflation may be lower than China and some other countries. The real salary hike in India may be around 3.5% as against 5.2 % in China.

1. The salary growth projection for India in 2015 at 10.8% is higher than what was projected for FY14 at 10%

2. The rise may not be limited to one particular category but the survey says that all employees from production workers to executive directors will see a higher salary growth than seen last year

3. Those working in the energy, pharmaceutical and professional services sectors may witness the highest salary increase ranging between 11.5% to 12%. In 2014 it stood between 7% and 10.5% for these sectors

4. The high-tech sector is expected to witness an increase in salary of 10.7% in 2015 as against 10.5% in the year ended March 2014.