BANGALORE: Indian employers are likely to dole out an average hike in salary of 10.8 pct to their staff for the coming year 2016. Regardless of fact that they are less optimistic on the business stance, the inflation is said to take up most of the increments, cited the Towers Watson report, reports NDTV.com.

As per the Towers Watson report for 2015-16 Asia-Pacific Salary Budget Planning “India is expected to see an overall projected salary increase of 10.8 per cent. Factoring inflation at 6.1 per cent, the net salary increase in 2016 is expected to be marginally higher at 4.7 per cent as against 4.5 per cent last year, when inflation was at 5.9 per cent".

 Although the overall salary increase will be projected even though 58 pct employers are less cheerful to the business outlook in India from their first quarter.
The projected higher overall salary increases are despite the fact that around 58 per cent employers in the third quarter are less upbeat on the business outlook for India than they were in the first quarter, the report said.
Data services practice leader-Asia Pacific at Towers Watson, Sambhav Rakyan "Companies need to be smart about how they use limited salary budgets, because high volatility and talent crunches are causing frequent shifts to pay".

For the time being, within employee levels the "top performers are expected to receive an even bigger raise averaging 12.5 pct. While on the other hand average and "above average" might just receive 9.7pct and 11pct increment respectively.

According to sector wise, the energy sector will receive the highest projected salary rise at 11.5 pct, followed by high tech sector (10.7 pct). The financial services sector that has normally received a higher pay rise will now see a humble 10.4 pct actual salary raise projected.
 

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