Only five sectors project a double-digit increment in 2019, and those are consumer internet companies, professional services, life sciences, automotive and consumer products
The double-digit salary hike that private companies are expecting may not be a reality ever again because of the maturing of pay increase budgets, according to a recent survey by global professional services firm Aon.
In the past 10 years, pay hikes have seen a spurt followed by a stabilisation. After that, there was a dip from high double-digit hikes to low double-digit hikes, and then finally to single-digits.
The hikes have been stable over the last three years, the survey stated. "A trend that has quietly but clearly emerged is the coming of age of India's corporates when it comes to managing compensation budgets," it said.
Only five sectors project a double-digit increment in 2019, and those are consumer internet companies, professional services, life sciences, automotive and consumer products.After analysing over 1,000 companies from over 20 industries, the survey said that India gave an average pay raise of 9.5 percent during 2018. "The projections for 2019 are stable yet favourable at 9.7 percent as companies expect a positive economic outlook backed by high economic growth expectation, high domestic demand and low inflation. A decline in voluntary attrition and controlled incremental hiring continue to keep the sentiment mild," the survey said.