India Inc is expected to give slightly lower hikes in salary as well as variable payouts this fiscal while the overall increment would be around 12 per cent,says a survey.
The lesser pay hike projection compared to about 13 per cent last fiscal comes against the backdrop of high inflation levels and global issues impacting domestic economic growth,it said.
The pay survey was conducted by Deloitte India,Human Capital Advisory Services (HCAS),part of global consultancy Deloitte.
According to the survey of 142 companies,average salary increases would be 12 per cent this fiscal while the variable payout would be 16 per cent during the same period.
Overall variable pay is calculated as a percentage of Cost to Company (CTC).
Deloitte in India’s Leader (Human Capital Advisory Services) Thiruvengadam P said this year,the increment figures are conservative compared to the previous fiscal.
“The overall median has dropped one percentage point to 12 per cent,” he said.
Manufacturing,infrastructure and real estate sector is projected to see the highest increment of as much as 15 per cent in 2012-13.
However,financial services sector is expected to have hikes of only about 10 per cent in the current financial year.
According to Thiruvengadam,domestic growth rate was impacted by RBI’s monetary policy tightening measures and geopolitical concerns.
“Nationally the effect was witnessed across all industries,as a result the spread of variable pay range has shown a considerable decrease as compared to 2011-12.
“Across all industries,the variable pay has reduced most for top management by 2.5 per cent points and the higher payout is expected to be at 30 per cent as compared to 41 per cent last year,” he said.
When it comes to attrition,pharmaceutical,healthcare and life sciences’ are expected to see the highest levels at 22 per cent.
“The overall attrition across industries is 13 per cent. Better pay and personal reasons have been rated as the key reasons for attrition industry-wide,” the survey said.