The employees are expected to get an average salary hike of 9.7 per cent across industries this year, a marginal increase from the last year, a report said. The firms expect a strong economic outlook on account of high economic growth expectation, high domestic demand and low inflation, said an annual survey by HR consultancy firm Aon Hewitt.
The top performers are likely to bag 15.6 per cent salary increase, it added. An average salary hike of 9.5 per cent was projected by the firm in 2018.
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“A decline in voluntary attrition and controlled incremental hiring continue to keep the sentiment mild,” the survey said.
China is expected to dole out a salary rise of 6.5 percent, Philippines 5.9 percent, Japan 2.5 percent, Singapore 3.9 percent and Australia 3 percent.
The top five industries giving double digit increase are consumer internet companies, professional services, life sciences, consumer products, automotive or vehicle manufacturing, the report added.
Sharing his views on the impact of new government formation on salary hike, Anandorup Ghose, Partner at Aon India Consulting said, “if positivity comes in the economy post election, regardless of how government performs, the positivity will last for next one year which will lead to higher pay increase for the next year.”
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The double digit pay increase days are well behind us, as India Inc shows maturity in managing economic and political cycles, he added.