E-commerce and early stage start-ups will offer the highest projected salary increase of 15.6 per cent, followed by Life Sciences at 11.6 per cent and electronic/print media at 11.2 per cent, it said.
On the other hand, financial institutions will offer the lowest average salary hike at 8.8 per cent, followed by metals industry at 9.3 per cent and telecommunications services at 9.7 per cent.
Aon Hewitt released the results of ‘Annual Salary Increase Survey 2015-16’ here on Wednesday. The survey is based on compensation data collected during December 2015-January 2016 from 700 organisations across 19 industries.
Anandorup Ghose, Partner at Aon Hewitt India, said, “Indian companies are taking clear steps to arrest the steady increase in compensation budgets. The lower inflation rates in the economy have helped companies in deciding on the reduced salary increases without creating too much disruption in the lives of employees.”
The survey also pointed out a trend of plateauing of double-digit salary increases in India. The pay increase was 12.6 per cent in 2011, which declined to 10.7 per cent in 2012, followed by 10.2 per cent in 2013, 10.4 per cent in 2014, and 10.4 per cent in 2015 as well.
This is the ‘new normal’ and is a sign of market maturity and a cautious approach to stay competitive in the Asia-Pacific region, Ghose added.
Despite this, India continues to offer the largest pay increases across Asia.