After hitting an eight-year-old low in 2017, pay hikes are expected to be on their way up in 2018; according to the latest HR news by India Inc. Based on the initial findings of HR consultancy Aon Hewitt’s India Salary Increase Survey, the upcoming appraisal season will see employees getting projected an average increment of 9.6 percent, as compared to 9.4% last year.
Anandorup Ghose, a partner at Hewitt India explains that the increase in salary hikes is a reflection of the fact that companies both in the services and manufacturing sector are optimistic about the business performance and project it to stabilise India this year.
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Professional services firms that were inundated with work due to the GST regime in 2017 are expected to lead the way with the biggest pay hikes, projected at 10.7%. Following these firms, are life sciences and automotive/ vehicle manufacturing. The latter ones are expected a pay hike of 10.6% and 10.4% respectively. The technology sector, which has undergone through a spate of upheavals recently, is projecting an average pay hike of 9.95% in the next year, following an average hike of 9.7% last year last year contrary to low market expectations.
According to Roopank Chaudhary, associate partner at Aon, other sectors expected to pay average hikes of above 10% in the next year are consumer products (10.3%) and entertainment/ communications and publications (10%).
Hospitality/ travel/ restaurants (8.9%), engineering design (8.8%), cement (8.6%), banking/finance (8.6%), and transportation/logistics/shipping service (8.6%) are sectors with lowest projected hikes.
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