New Delhi: Driven by scarcity of talent and increasing competition, Indian companies are expected to hike salaries in the new year with the pharma, telecom and consumer goods companies leading the space with up to 12% pay hike, global consultancy Ernst & Young says.
The salary increments are likely to improve relatively, albeit conservatively in 2010, compared to the single-digit hikes seen across hierarchies, functions and performance levels last year.
“In spite of all the excitements, actual salary increases will be somewhat conservative with salary increases in the IT and technology firms to be around eight per cent with pharma and consumer goods companies leading the space with forecast increments of around 10-12%,” E&Y partner and global leader-HR advisory NS Rajan told PTI.
The telecom growth story would continue in 2010 with an above-average salary hike expected in the sector, Rajan added.
Other sectors which would continue to battle the talent war owing to crunch include energy, power and real estate.
India Inc’s overall salary increase for 2010 is forecast to be between 9-12%, according to the survey.
Meanwhile, adversely hit by rupee-dollar fluctuations and the global slowdown, export-oriented sectors like IT/ IT-enabled services, textiles would tread cautiously.
The IT sector is likely to give increments in single digits, which will perceived to be conservative as compared to hikes forecast for other sectors, Rajan said.