Pay hike in India to average 13% this year: Aon Hewitt study

The Aon Hewitt Annual India Salary Increase Survey projected a 12.9% average hike in pay packets in 2011.

Though the hiring outlook is at the highest level since 2005, the rise in salaries is yet to reach pre-crisis levels. In 2008, the Aon Hewitt survey showed that pay packets were 13.3% fatter. In terms of real growth, after inflation, it was higher in 2011 at 5.9%, compared to 5.1% in 2008. Aon Hewitt's Nitin Sethi, however, said that in India, the inflation rate was not the key factor for determining salary hikes.



"Instead, it is determined by demand and supply," he said. So, if there is scarcity of people with the skill sets that you possess, your hike could be higher.

In terms of performance, the survey showed that the top performers are in line to get an average hike of 17.8%, while the next best -- those who exceeded expectations -- could get a 13.6% raise.

According to the Manpower Employment Outlook Survey, the survey of 5,122 employers across India indicates that most Indian employers are reporting bullish hiring plans. The seasonally adjusted Net Employment Outlook of +51% improves by 8 and 13 percentage points quarter-over-quarter and year-over-year, respectively.

Positive hiring plans are reported by employers across all four regions, and Outlooks are up in all seven industry sectors when compared to both the previous quarter and to 2Q 2010. Job seekers in the Manufacturing Sector (+56%) and Finance, Insurance & Real Estate Sector (+55%) can look forward to the most vigorous hiring pace in the next three months, while the weakest – but still robust – hiring plans are reported by employers in the Transportation & Utilities sector (+41%).

“This is India’s strongest employment forecast since survey started in 2005; the great news is that all the sectors are anticipating a robust hiring pace and creating jobs in large numbers. The hiring plans in the Manufacturing Industry sector are noteworthy, too. Not only is the Outlook the most optimistic reported by employers since the India survey started in 2005, surprisingly, it is also the first time when hiring intentions among Manufacturing sector employers have been the strongest of any of the seven sectors surveyed,” said Sanjay Pandit, Managing Director of Manpower India.

The Manpower survey shows employers in 33 of 39 countries and territories report varying degrees of positive hiring activity for the second quarter. Employers in India, Taiwan, Brazil, China, and Turkey report the strongest second-quarter hiring expectations, while those Greece, Spain, Ireland and Italy report the weakest forecasts globally.

Hiring plans across the Asia Pacific region continue to be strong with Net Employment Outlooks improving year-over-year in seven of the eight countries and territories Manpower surveys. However, compared to three months ago, Outlooks are marginally weaker in Singapore, New Zealand, China and Hong Kong. Regional hiring expectations continue to be strongest in India and Taiwan and weakest in Japan.