Log has written
WEDNESDAY, FEBRUARY 15, 2012

New Delhi: Salaries in India will see the lowest increase in six years as slowdown impacts business and demand for people, a survey said.

Salaries will rise by an average 8.2% in 2009, according to an annual salary increase survey released Thursday by Hewitt Associates, part of Illinois-based human resource consultant Hewitt Associates Llc.

Also See Losing Pace (Graphic)

Pay packets grew by 13.3% and 15.1% in 2008 and 2007, respectively. Hewitt said it surveyed 480 companies in India between December 2008 and January this year.

“The downturn has hit all economies across the globe and those that had dependent economic ties with the US are the ones most affected,” Sandeep Chaudhary, leader of Hewitt’s performance and rewards consulting practice in India, said in a statement, adding, “expectedly, salary increase projections have dipped from previous years.”

Interestingly, staff at the junior manager, professional and supervisor levels are expected to receive the highest increase for the ninth year in a row, the report said. Junior employees are expected to see their pay increase by 8.8%, while top management executives can expect to take home a raise of 7.4%.

Consumer goods, telecom and consumer durables firms are projecting higher raises. Average increases at Samsung India Electronics Pvt. Ltd will be less than 10%, according to Sanjay Bali, vice-president, human resources.

Last year, average pay increase at Samsung was 22%.

Sectors witnessing lowest pay hikes include entertainment, communications and publishing industries, which are dependent upon other industries for advertising revenues.

Graphics by Sandeep Bhatnagar / Mint

Tags - Find More Articles On:
READ MORE ARTICLES BY:
blog comments powered by Disqus
Inflation at 2-year low; risks remain
Fall increases chances of monetary easing by RBI; analysts warn macroeconomic risks could reverse trend
Home, auto and personal loans see sharp fall in growth
The year-on-year loan growth to capital-intensive industries slowed to 19.8% between December 2010 and...
Banks oppose Irda norms on retailing policies
With banks starting their own insurance ventures, non-bank promoted insurers have been finding it difficult...
Tata Motors net profit up on strong JLR sales
The company’s profit soars 41% to a record high of Rs 3,406 crore in the three months ended December
RBI warns on bad loans, but says situation not alarming
Sinha said it will be more challenging for banks to find equity investors after the stricter capital...