February 23, 2012: According to a recent survey conducted by Aon Hewitt, the salary level across the Indian Industry is expected to increase by 12 per cent in 2012. This represents the largest increase in the Asian region for the 10th consecutive year.
The survey spanned across 550 organizations spread across 19 primary industries and 31 sub sectors. The duration of the survey was from November 2011 to January 2012.
The increase in salaries is a clear indication of the country’s economic growth and its ability to move forward during the period of economic uncertainty. However there is a possibility of decline in the growth rate which may vary from 0.3 to 2% when compared to the last year’s salary growth rate.
The survey observes that the Technology or Information Technology sector will experience a salary growth of 11.9 per cent. During 2011, it was 12 per cent and the survey predicts that there will be a difference of .1 per cent in the salary growth. In the case of Information Technology enabled Services, the salary growth is expected to be 11.8 per cent, which is 0.1 per cent less when compared to the last year. The growth in salary is projected in the wake of the ongoing economic crisis in the west.
In India, the employee turnover is 20 per cent and the sectors that experience high attrition are finance, IT and retail, says Aon Hewitt.
Even though it represents the highest growth rate, the salary in Indian Industry is the lowest when compared to other countries across the Asian region. The quantum of pay offered by the industries in other countries is far higher than what is paid in India.
The 12% salary hike which is projected for the year is set to outpace the 9.5% increase in China and 6.9 % in the Philippines.
The survey has also projected the hike in salary based on the different levels of working of employees. The top or the senior management is expected to experience a salary hike of 11.1 per cent, less than 11.2 per cent as of 2011. A 12 per cent hike is expected to occur across the middle management, while it was 12.5 per cent during 2011. In the case of junior level employees, the growth in salary is expected to be 12.3 per cent, which was 12.7 during 2011. Entry level employees will experience an increase of 11.8 per cent as compared to 12 per cent in 2011.