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The IT-enabled services industry in India gave the highest average salary increase in 2003 at 14 per cent. The highest pay increase forecast for next year is to be in the software sector with a raise of 14.2 per cent.

New Delhi , Nov. 11

COMPANIES in India, cutting across various sectors of the industry, offered the highest average salary increase in the Asia-Pacific region during 2003, according to a survey by Hewitt Associates, a global human resources consulting firm.

According to Hewitt's `Annual Asia Pacific Salary Increase Survey', India was on top with an average salary hike at 10.38 per cent in 2003, followed by the Philippines, China and Korea occupying the next three slots.

Sectorally, the IT-enabled services (ITES) industry in India gave the highest average salary increase in 2003 at 14 per cent. Hewitt will release a detailed survey across industries in January 2004.

Salary increase in India in 2004 is projected to be at 11 per cent. The highest pay increase forecast for next year is to be in the software sector with a raise of 14.2 per cent, a statement by Hewitt here said.

Hewitt, the statement said, surveyed 92 organisations in India, spread across industries such as banks/financial services, chemicals, engineering and automobiles, in a total of 991 companies surveyed in the Asia-Pacific region.

Employees in the Philippines enjoyed salary raises ranging from 7.1 per cent to 8.6 per cent across various job categories, which was lower than the 6.4-10 per cent range in 2002.

"In Korea, the range spanned 7.3 per cent to 7 per cent, while in China, employees continued to enjoy average salary increases ranging from 6.7 per cent to 7.3 per cent," Hewitt said.

In more developed economies such as Singapore and Hong Kong, salary increases ranged from 2.1 per cent to 2.4 per cent and 1.3 per cent to 1.5 per cent, respectively.

In Japan, the hike was in the region of 1.6 per cent to 2.1 per cent, whereas in Thailand, Malaysia, Taiwan and Australia, the average hikes in 2003 were in the range of 3 to 5 per cent.

Hewitt found that in almost all cases, employers appeared to be a little more confident about the direction of the economy in 2004 as they have projected a slightly higher salary increase.

As far as pay freezes are concerned, in India, only 4 per cent of the respondents said they froze salaries in 2003 while in Malaysia and the Philippines, the freeze rate was 8 per cent and 3 per cent, respectively.

No company in India said they would impose pay freezes in 2004.

The survey also revealed that in 2003, the variable pay, as a percentage of the total compensation, was the highest among senior/top management at 18.8 per cent. In 2004, this would go up to 21.2 per cent.

The employee attrition rate during 2003 in most of the Asia-Pacific region was about 10 per cent. The greatest employee turnover was reported in Malaysia where the average overall turnover rate was 17.7 per cent.

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