Slump-hit India Inc won't chop increments this year; 2011-like salary hikes seen

India Inc may be staring at difficult economic conditions and cost and margin pressures, but it is unlikely to back down too much as it hands out increments this year. Average hikes are likely to be only slightly lower than last year, but will still be in low double digits, according to estimates from HR and compensation consulting firms, including Mercer and Aon Hewitt, and forecasts by companies such as PepsiCo and Samsung. "Average increments will be similar to last year and will not dip to single digits in most sectors," says Muninder Anand, market business leader, information product solutions, Mercer. India Inc gave out an average increment of 12% last year, the firm estimates. "The mood is upbeat at the moment, which was not the case even a month ago," adds Anil Koul, executive director, Omam Consultants. The hint of a turnaround in the last quarter of 2011 may also dissuade companies from slashing increments.

Source: Economic Times