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Good news for employees! Average salary hike in Indian companies likely to be 9.7%, says survey

With increment season being just around the corner, a survey on average appraisal percentage gives Indian salaried class a big reason to cheer!

By : ABP News Bureau | Updated at : 06 Mar 2019 08:55 AM (IST)

Salary hike for India Inc employees pegged to be at 9.7% this year, says Aon survey Good news for employees! Average salary hike in Indian companies likely to be 9.7%, says survey

Industries are projecting a marginally higher pay increase budget this year. (Image: AFP)

Employees are expected to get an average salary hike of around 10 per cent

Performing employees can even bag a salary appraisal of 15.6 per cent

Survey on average appraisal percentage gives salaried class a big reason to cheer

New Delhi: With increment season being just around the corner, a survey on average appraisal percentage gives Indian salaried class a big reason to cheer! The 23rd edition of annual Salary Increase survey released by professional services firm Aon Hewitt suggests that employees are expected to get an average salary hike of 9.7 per cent across various industries this year. Several Indian industries, this year, are projecting a marginally higher pay increase budget for the current fiscal. The survey also expected that performing employees can even bag a salary appraisal of 15.6 per cent. The same survey conducted last year projected an average salary hike of 9.5 per cent. The aforementioned figure for this year was projected by the companies on the back of a positive economic outlook backed by high economic growth expectation, high domestic demand and low inflation. “A decline in voluntary attrition and controlled incremental hiring continue to keep the sentiment mild,” Aon added in a statement. The survey also highlighted that India stands way ahead from other Asian-Pacific countries with China expected to dole out a salary rise of 6.5 per cent, Philippines 5.9 per cent, Japan 2.5 per cent, Singapore 3.9 per cent and Australia 3 per cent in 2019. 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. The survey collected data from more than 1000 companies from over 20 industries. Speaking about the survey stats and on the impact of new government formation on salary hike, Partner at Aon India Consulting Anandorup Ghose said that 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 a higher pay increase for the next year. “The double-digit pay increase days are well behind us, as India Inc shows maturity in managing economic and political cycles,” Ghose added. The survey further demonstrated that the overall attrition rate in India has come down to 15.8 per cent in 2018 from 18.5 per cent in 2013. The involuntary attrition (layoffs) has gone up, significantly in the case of entry level.

Published at : 06 Mar 2019 08:55 AM (IST)