Indians to get 12% pay hike in 2012

Indian workers are projected to receive an 11.9 per cent pay hike in 2012, a new survey by a global human resource consultancy has revealed.

According to Aon Hewitt, the projections for 2012, in the 16th Annual India Salary Increase Survey, were marginally lower compared to the actual increase of 12.6 per cent in 2011.

“The number mirrors a positive yet cautious outlook as organisations strive to take a balanced view in light of the uncertain economic environment,” the survey said.

Although the projected 12 per cent increase this year is a percentage point short of last year’s 13 per cent projected increase – and even smaller when compared to the 15.2 per cent clocked in 2008, the pre-Lehman era, this year’s projected hike is substantially bigger than the 8.2 per cent pay rise Indian workers witnessed in 2009, and even the 10.6 per cent projected hike in 2010.

This year, compared with other markets, India outpaced Asia-Pacific with the highest salary increase in the region, followed by China and the Philippines, projecting a 9.5 and a 6.9 per cent salary increase in 2012, respectively.

Sandeep Chaudhary, practice leader, compensation consulting, Aon Hewitt, said despite the economic growth in 2011 being hit by inflation, high interest rates and a slowing global economy, there are encouraging signs.

“The economic growth in 2011 was hit by stubbornly high inflation, high interest rates, a slowing global economy and a policy paralysis in India. However, we are seeing encouraging signs in recent weeks on business sentiments. While organisations across industries are keeping a watchful eye on this oscillating macro-economic environment, the number reiterates that organisations are taking a long-term view on talent,” said Chaudhary.

Click here for Pay Package Predictions 2012

The Aon Hewitt survey was carried out among 550 organisations belonging to 19 sectors between November 2011 and January 2012. Among the sectors projected to witness maximum salary hike of 13.3 per cent is the pharmaceutical industry, closely followed by 13 per cent for the engineering design and services sector.

On the other hand, bank employees and those in the financial services industry will get the least pay hike, and can look forward to their salaries going up by 10 per cent in 2012.

The survey suggests that employees in junior management/supervisory roles will witness the maximum pay hike – at 12.3 percent – while top and senior management personnel will see the least pay hike –at 11.1 per cent.

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