InvestorQ : I read a report saying salary hikes will be 9.7% this year. So even I will get 9.7% hike?
Nishita Gala made post

I read a report saying salary hikes will be 9.7% this year. So even I will get 9.7% hike?

Answer
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simran Kaur answered.
1 year ago


What you have read is true, but that doesn’t mean it holds true for every individual.
There’s no rule that says that salaries this year will hike by 9.7%. This was a figure reported by a study conducted by professional services firm Aon, which in its 23rd edition of annual Salary Increase Survey in India, analysed data across 1000+ companies from more than 20 industries.
According to this study, companies will give average 9.7% hike to their employees. Furthermore, the study states:
- Indian companies gave average pay increase of 9.5% during 2018, reflecting improved business sentiment compared to 2017.
- Number of sectors projecting a double-digit increment have come down over the years. Only five sectors, viz Consumer Internet Companies, Professional Services, Life Sciences, Automotive and Consumer Products are projecting double-digit increment for 2019.
- Increment projections in other sectors are a reflection of the expected growth prospects during the year. With the government’s focus on infrastructure investment, sectors such as cement, metal, engineering services saw a revival in demand and an improvement in increment projections for 2019.
The report states, “The projections for 2019 are stable yet favourable at 9.7% as companies expect a positive economic outlook backed by high economic growth expectation, high domestic demand and low inflation. A decline in voluntary attrition and controlled incremental hiring continue to keep the sentiment mild.”
Thus, the 9.7% hike is an average and will vary from one individual to another.
Hope you receive a good hike this appraisal season!