Indians can expect 10-11% salary hike in 2016, says survey

A few days back, we told you how Indian employers are looking forward to hire more people in the coming year. If reports are to be believed, employees of some Indian companies are also expected to see an increase in their base salaries by 10.5% next year.

The report is from India All Industries Total Remuneration Survey, and was done by consulting firm Mercer over 691 Indian organizations.
The expected base salary that employees would get in 2016 would see an increase ranging from 10% to 11% as compared to the average actual salary increase in 2015, which was 10%. The increase is relatively higher for life sciences, IT and chemical industries.

"Life sciences has really caught up as an industry sector, not just in India but also in other parts of the world," Mercer's global CEO Julio Portalatin told ET. "We do believe that the phenomenon is likely to continue with life sciences and IT continuing to lead the pack, with life sciences slightly ahead of IT," he continued.

"Life sciences is a highly competitive industry and you are going to see the pressure on salaries and that's why the life sciences group is leading the variable increase for salaries and is expected to be the same in 2016. It is reflective of how important it is to adjust our solution to that industry to make it as competitive as possible," Portalatin said.

The survey also showed that over the years, the gap between salary increases across different industries has narrowed.

Another thing that has come out of the survey is that about 48% of Indian companies expect to hire more people in 2016. As per Portalatin, one in two companies is planning to increase their headcount. In these companies, those dealing in hi-tech, shared services and life sciences are the leaders.

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