Employees in India across sectors may expect a salary hike of 10.8 per cent on an average, in 2016.
This, however, will keep alive the question whether it is enough to offset the impact of inflation. If inflation is factored at 6.1 per cent, the net salary increase in 2016 is expected to be 4.7 per cent. Interestingly, this would be marginally higher than the average effective salary increase of 4.5 per cent in 2015, according to the latest Towers Watson report. Sector-wise, energy has the highest actual projected salary increase in 2016 at 11.5 per cent, followed by high tech at 10.7 per cent. Financial services, which have traditionally seen higher pay increases, would witness a modest 10.4 per cent actual projected salary increase, the Towers Watson 2015-16 Asia-Pacific Salary Budget Planning Report, said.
The Towers Watson report coincided with the India Skills Report 2016, conducted jointly by global talent assessment company, Wheebox, India’s leading platform-based HR outsourcing, technology and recruitment firm, PeopleStrong, in collaboration with CII and LinkedIn, portrayed a somewhat brighter future for 2016, when it came to the country’s overall job market.
“India is expected to see an overall projected salary increase of 10.8 per cent. Factoring inflation at 6.1 per cent, the net salary increase in 2016 is expected to be marginally higher at 4.7 per cent as against 4.5 per cent last year, when inflation was at 5.9 per cent,” said Report.
The projected salary increases are despite the fact that around 58 per cent employers in the third quarter are less upbeat on their business outlook for India than they were in the first quarter, the report said.
SambhavRakyan, data services practice leader-Asia Pacific at Towers Watson, said, “Employers may be bearish in thinking there is a weak business outlook given the current poor market data, but the case is the opposite for employees, who hold bullish expectations for salary rises.”
Said Nirmal Singh, founder and CEO of Wheebox, “We are confident that with efforts being taken by stakeholders like government, companies and the academia, we will see more talent being employable.”
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