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.
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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