India on the 2nd position in salary increment: Survey

Nov 22:   The booming economy has been the cause of salary hike in the South Asian countries as found in the latest survey. India is on the second position after Sri Lanka having the wages trek of 14.8 percent against Lanka’s hike of 15.3 percent.

“The lack of worthy professionals and the continuous growth in country’s economy are forcing the corporate companies to hike the salary package up to double digits to sustain their employees.” This fact comes from a recent survey, ‘Asia-Pacific salary increase survey’ conducted in the 14 countries in Asia by a human-resource consulting firm Hewitt Associates.

According to Hewitt Associates, Sri Lanka has surpassed India this year from the top position as per last year. The Sri Lankan companies have raised an average hike of 15.3 percent in wages while India raised the salary up to 14.8 percent this year.

The experts are expecting to raise the wages by 14.4 percent in the next year in India that will be the fifth consecutive year when the salary hike goes into two digits. It is because of continuous economy growth in India. The South Asian country, especially India is thriving with rapid growth rate that is making the nation stronger in economy, report says in the survey.

India is still facing the deficient problem of ‘really’ talented professionals and for freezing them into their organisation, the companies have to increase the salary package continuously. On the other hand, the blazing inflation rate in Sri Lanka forced the companies to hike the package to fulfill the employee’s requirement, explained Hewitt.

The economic growth of India has continued to cross the 8 percent barrier since last four years. India has registered an average of 8.4 percent economic growth in the last four fiscals and expecting to sustain this till the end of current fiscal year as per company reports.

Hewitt has conducted the survey in 262 Indian companies that explore the fact that ‘low-level employees have greeted more salary hike in India. The employees up to junior management level have received the highest average salary increment of 16 percent this year, and have more chance to get a 15.6 percent growth in 2008’, as the survey found.

Whereas, the company has also reported that top executive have also got 22.1 percent wage increment and will goes on 23 percent in the next year for the same.