Expecting a salary hike this April, please don't, says Aon Hewitt

Employees may get the lowest salary hike in eight years this year, says a survey conducted by the consulting firm-Aon Hewitt. The survey which was based on 1,000 private companies, projects an average of 9.5 per cent increase in salaries across various industries. The salary hike is likely to go down by 1 per cent, mainly due to the impact of Brexit, changes in the US government or Indian Government's demonetisation move. 

Anandorup Ghose, the partner at Aon Hewitt India said that the political changes and economic headwinds have had an impact on business performance. However, the trend this year, reflects a gradual slowing of pay increase and higher emphasis on productivity and performance. Sectors that are likely to project a double-digit salary increase for 2017 include life sciences, professional services (10.9 per cent), chemicals (10.3 per cent), entertainment media (10.3 per cent), automotive and consumer products. The lowest hikes would be witnessed in financial institutions (8.1 per cent), transportation (8 per cent) and cement sectors (7.6 per cent).

The India salary increase survey done by Aon Hewitt, is seen as an indicator of the coming performance appraisal for white-collar employees, both in the services and manufacturing sectors. Meanwhile, over the past 15 years, the increase in Indian employees’ annual pay has outpaced other Asian economies. However, the salary increase in India has consistently come down from 10.6 per cent in 2015, to 10.2 per cent in 2016, and now an estimated 9.5 per cent in 2017, Anandorup Ghose added.