Indian companies expected to raise salaries by 10% in 2017: survey

“Over the years, salary increase differentiation across industries has narrowed down. Over the last three years, salary increases have stabilised around 10 per cent,” Ruchika Pal, Principal & India TRS Product Leader, Mercer said, adding, “the overall increases including promotions and market corrections, are pegged at 10.8 per cent”.

The salary hike is expected to be between 10-11 per cent overall, although the life sciences and shared services industries are expected to get a higher raise.

The survey covered 768 organisations across many sectors in the country.

Read: Indians confident amid global slowdown in hiring

“Against the backdrop of increased demand for talent and high attrition rates, the majority of companies use inflation rate as the basic minimum level to peg their salary increases and engage their employees. The increase in real wages reflects the acute talent demand supply mismatch,” Pal said.

“We note that companies are expecting to see a 2 to 5 per cent increase in business results, over 2015. Companies in India are bullish about growth and will continue to hire and invest in talent,” Shanthi Naresh, India Business Leader-Talent, Mercer, said about hiring practise in companies.

“Hitech and shared services sector are continuing to grow strongly. India is increasingly becoming a development hub as well as a captive shared services centre,” Naresh said, adding that companies are looking to spruce up digital arms such as product development, data analytics and sciences and others.

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