Study by recruitment tendering platform MyHiringClub.com says that companies are expected to dole out an average pay hike of 11per cent for the year ended March 2013 lower than 12-13 per cent in the preceding fiscal.
Experts have reasoned the down fall due to sluggish economic activity.
“The increment percentages have dropped by 1-2 per cent across levels compared to last year,” MyHiringClub.com CEO Rajesh Kumar said.
Second to this view is Vishnu Shankar MD of Apex HR Solution MD, he said: “Around 11 per cent salary increment is expected in current fiscal. When making recommendations on salary increments, organisations take into account factors such as the uncertainty in the economical conditions.”
Other experts attributed the major reason for lower salary increments to lesser corporate revenues compared to the year-ago period as economic growth in current fiscal is hit by stubbornly high inflation, lofty interest rates and a slowing global economy.
The survey, which was conducted among over 2,400 senior executives and 1,4500 employees, said that a majority of 84 per cent respondents plan to give salary
hikes in the current fiscal. This number, is, however down three per cent compared to FY’12.
The telecom and engineering and manufacturing space might see eight per cent salary increment, followed by 10 per cent each in real estate, automobile, pharma and infrastructure sectors.
Besides, IT or IT-enabled, banking and finance and textile sectors could see average salary hikes of about 11 per cent each. Sectors like consumer durables and FMCG would see more than average salary hikes at 12 per cent each, the survey said.
“The economic growth in current fiscal is hit by inflation, interest rates, a slowing global economy.
In current scenario, increments are also going to be affected,” Sat-n-Merc Manpower Consultant Director Prachi Kumari said.
Source – Agencies