Salaries to Rise by 8 Percent As Employee Demand Increases

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Oct. 13 – India’s salary rates are expected to increase at an average rate of eight percent this year and with as much as 50 percent of companies saying that they plan to recruit in the next three months, according to a survey conducted by global HR consultancy Mercer.

The Mercer India Monitor quarterly survey reports that companies were bullish for next year’s economic prospects with salaries expected to rise by as much as 10.9 percent. “Despite the fact that past year saw slowest growth in a long time, the economy is expected to grow at over six percent and industry is estimated to see overall average salary hikes at 8 per cent for 2009,” Mercer’s information product solutions business India leader Gangapriya Chakraverti said in a statement.

Chakraverti added: “Overall forecast for 2010 is at 10.9 percent compared to eight percent this year. Most sectors are forecasting double digit increases for next year.”

The Mercer survey studied the hiring expectations of 93 companies. It showed that majority of companies did not include variable pay in the salary increment definition but link variable pay to the fixed compensation and have a separate budget for the latter says Business Standard.