The salary hikes for India in 2012 will decline marginally from 12.6% in 2011.
Employees in India are likely to get this year a salary increase of 11.9%, putting the country on the top for tenth year in a row in terms of pay hikes within the Asia Pacific region, a survey showed today.
As per the survey conducted by global human resources consulting and outsourcing firm Aon Hewitt, the salary hikes for India in 2012 would decline marginally from 12.6% in 2011 due to a cautious approach by employers, but it would still figure among the highest in the world.
According to its annual India Salary Increase Survey released here today, the projected pay hikes in indicate a positive, yet cautious, outlook by the organisations amid an uncertain economic environment.
India would see the highest salary increase in the Asia Pacific region, followed by China and the Philippines, which are likely to see 9.5% and 6.9% salary hikes, respectively, in 2012.
India has topped the list in terms of salary hikes for tenth consecutive year within Asia Pacific region.
Among other Asia Pacific nations, Australia is likely to see a modest 4.6% hike, Hong Kong 5%, Japan 2.8%, Malaysia 6.2% and Singapore 4.8%.
"We are seeing encouraging signs in recent weeks on business sentiments," said Sandeep Chaudhary, Practice Leader, Compensation Consulting at Aon Hewitt.
"While organisations across industries are keeping a keen and watchful eye on this oscillating macro-economic environment, the number reiterates that organisations are taking a long-term view on talent," he added.
In India, the general/entry level staff are likely to get 11.8% salary hike, while junior manager level will see 12.3%, middle management 12% and senior management 11.1% increase this year.
The survey covered 550 organisations, representing 19 primary and 31 sub-sectors, and was conducted over a three-month period from November 2011 to January 2012.
In terms of sectors, pharmaceutical space is likely to witness a 13.3% salary hike for 2012, followed by engineering design/services projects at 13%.
Infrastructure with 12.9% and heavy engineering and FMCG sectors with 12.4% hike would continue to get higher salary increases than the country-average for the second year in a row.
The Information Technology (IT) and outsourcing sectors would see salary hikes of 11.9% and 11.8%, respectively, despite the continuing concerns over the impact of a weak global economy.
Telecom and Financial Institutions are projected to see lowest salary increases for 2012 at 11% and 10%, respectively, plagued by various regulatory hurdles, policy issues and the slowdown in the global economy.
Salaries for critical talent are projected to increase by 15.1% this year, which would be higher by over three percentage points than the overall average, as India Inc is concentrating efforts on identifying top talent and rewarding them accordingly, Aon Hewitt said.
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