BackCompanies to give average 11% salary hike in FY15: Survey
92% companies said that they would dole out increments while another 90% firms are also likely to give bonuses, says the survey
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New Delhi: Indian companies are expected to give an average 11% salary hike this fiscal as firms increase their strategic spending, says a survey.
As per the survey conducted jointly by MyHiringClub.com and FlikJobs.com, as much as 92% companies said that they would dole out increments for their employees in the current appraisal season, while another 90% firms are also likely to give bonuses.
The salary hike across industries would be of an average 11%, while the average bonus will stand at 10%, the survey revealed. “Current appraisal season salaries and bonuses in India are expected in double digits. Increments have been conservative at 11% and bonuses have been 10%, attributable to the prevalent market sentiment," MyHiringClub.com CEO Rajesh Kumar said.
The quantum of the increment to be doled out this year by companies largely fall in the range of 5% to 10% and the bonus would lie between 5-20% of the annual compensation of the employees, according to the survey.
“The increment and bonus percentages has increased by 1-2% points across levels compared to last year, with maximum impact at top management level," Kumar added.
The survey covered 5,754 top executives of companies including chief executive officers, chief financial officers, head of finance and human resources as well as 22,300 employees.
“We witnessed early signs of resurgence in India, and this translated to improved strategic spending on employees - through salary increases, bonuses & incentives," Kumar said.
As per the findings, 32% employees surveyed are expecting hike and bonus of 5-10%, 25% are expecting it between 10-15%, 21% up to 5% and 12% between 15-20% hikes.
About 10% employees are not expecting any bonus and salary increase, the survey said. Interestingly, a majority of the employees (86%) are expecting a promotion this year.
Region-wise, 91% firms in southern parts of the country are planning to give increment and bonus this year as compared to 89% in north, 87% in west and 85% in the east.
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