India Inc. is likely to dole out an average of 10.3 per cent salary hike in 2016, lower than the 10.6 per cent average hike in the previous year, according to a survey by Aon Hewitt.
Interestingly, India and China are the only two countries in the Asia-Pacific region, where salary hikes are likely to register a dip in 2016.
"The lower inflation rates in the economy has helped companies in deciding on the reduced salary increases without creating too much of a disruption in the lives of employees," said Anandorup Ghose, partner at Aon Hewitt India.
According to the survey of 700 companies, aggressive pay increases may be a thing of the past as domestic firms are taking steps to "arrest" the steady increase in compensation budgets.
"Start-ups stand out despite being in the pre-profit stage for over three years and continue to have an aggressive stand on pay. At 15.6 per cent salary increase projected for 2016, they feature as number one, with the closest second being life sciences at 11.6 per cent," Aon Hewitt said in a statement.
The IT sector, which employs nearly 4 million people, is projected to get 10.8 per cent salary hikes this year. Employees in media, and consumer products are also projected to get a higher increase than the market average, according to the survey.
On the other hand, employees in financial, metals, telecom, logistics, infrastructure and energy sectors are likely to get lower hikes.
However, high-performers should not worry about lower compensation budgets this year. "The payout gap between an average performer and key skills is growing year on year. At 63 per cent, this is the highest differentiation India Inc. has observed," the survey found.
According to Aon Hewitt, attrition rate in India has dropped to 16.3 per cent, the lowest that corporate India has observed since the 2009 financial crisis.
India Inc. is likely to dole out an average of 10.3 per cent salary hike in 2016, lower than the 10.6 per cent average hike in the previous year, according to a survey by Aon Hewitt.
Interestingly, India and China are the only two countries in the Asia-Pacific region, where salary hikes are likely to register a dip in 2016.
"The lower inflation rates in the economy has helped companies in deciding on the reduced salary increases without creating too much of a disruption in the lives of employees," said Anandorup Ghose, partner at Aon Hewitt India.
According to the survey of 700 companies, aggressive pay increases may be a thing of the past as domestic firms are taking steps to "arrest" the steady increase in compensation budgets.
"Start-ups stand out despite being in the pre-profit stage for over three years and continue to have an aggressive stand on pay. At 15.6 per cent salary increase projected for 2016, they feature as number one, with the closest second being life sciences at 11.6 per cent," Aon Hewitt said in a statement.
The IT sector, which employs nearly 4 million people, is projected to get 10.8 per cent salary hikes this year. Employees in media, and consumer products are also projected to get a higher increase than the market average, according to the survey.
On the other hand, employees in financial, metals, telecom, logistics, infrastructure and energy sectors are likely to get lower hikes.
However, high-performers should not worry about lower compensation budgets this year. "The payout gap between an average performer and key skills is growing year on year. At 63 per cent, this is the highest differentiation India Inc. has observed," the survey found.
According to Aon Hewitt, attrition rate in India has dropped to 16.3 per cent, the lowest that corporate India has observed since the 2009 financial crisis.
India Inc. is likely to dole out an average of 10.3 per cent salary hike in 2016, lower than the 10.6 per cent average hike in the previous year, according to a survey by Aon Hewitt.
Interestingly, India and China are the only two countries in the Asia-Pacific region, where salary hikes are likely to register a dip in 2016.
"The lower inflation rates in the economy has helped companies in deciding on the reduced salary increases without creating too much of a disruption in the lives of employees," said Anandorup Ghose, partner at Aon Hewitt India.
According to the survey of 700 companies, aggressive pay increases may be a thing of the past as domestic firms are taking steps to "arrest" the steady increase in compensation budgets.
"Start-ups stand out despite being in the pre-profit stage for over three years and continue to have an aggressive stand on pay. At 15.6 per cent salary increase projected for 2016, they feature as number one, with the closest second being life sciences at 11.6 per cent," Aon Hewitt said in a statement.
The IT sector, which employs nearly 4 million people, is projected to get 10.8 per cent salary hikes this year. Employees in media, and consumer products are also projected to get a higher increase than the market average, according to the survey.
On the other hand, employees in financial, metals, telecom, logistics, infrastructure and energy sectors are likely to get lower hikes.
However, high-performers should not worry about lower compensation budgets this year. "The payout gap between an average performer and key skills is growing year on year. At 63 per cent, this is the highest differentiation India Inc. has observed," the survey found.
According to Aon Hewitt, attrition rate in India has dropped to 16.3 per cent, the lowest that corporate India has observed since the 2009 financial crisis.
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