India Inc. employees can expect generous raises this calendar year. Companies in India plan to increase their employees’ salaries by an average of around 13% this year versus an average increment of 11.7% in 2010, according to a survey by consulting firm Aon Hewitt, released on Tuesday.
These gains reflect the healthy growth of Indian companies as well as their optimistic view of the future, said Nitin Sethi, India practice leader of compensation consulting at Aon Hewitt. He added that companies have aggressive hiring plans in the near future and since the supply of talent in India is not growing as fast as demand, salaries will be headed upwards.
“For the next three to five years, salaries increases will be in the range of 12% to 15% across sectors,” said Mr. Sethi. This year, the highest raises of around 14% will come from companies in the industrial sector such as engineering firms, automobile, energy-related companies and infrastructure companies, according to the survey. These industries have benefited from strong domestic investment and consumption in India.