NEW DELHI—Salary increase for 2010 in India is projected to be 10.6%, the highest in Asia Pacific and up 60% from the actual increase of 6.6% in 2009. Indian owned companies are expected to outperform MNCs with a projected average increase of 11.4% as against a 10.2% by the latter. Energy, Telecommunications, Pharmaceutical, EPC (Engineering, Procurement and Construction) and Automotive are among the sectors projecting highest increases ranging from 11.6% to 12.8%. Technology and Outsourcing sectors have shown tremendous recovery over 2009, but are playing cautiously with single digit increases in the range of 8.5% to 8.9%. These findings were revealed in the 14th annual Salary Increase Survey covering 465 companies across 20 primary industries, conducted by global human resource services firm, Hewitt Associates.

Sandeep Chaudhary, leader of Hewitt's Performance and Rewards Consulting practice in India, commented, "Organisations in India are positive and are looking at measured, realistic growth, with a keen eye on cost consolidation and prudence. The economy has shown faster recovery in sectors that rely on domestic growth and consumption, while recovery in sectors that have global dependence is expected to gain speed by mid 2010. This growth and the fact that 2009 saw a lot of salary freeze and salary cuts, are providing an impetus for healthy increase in compensation for employees."

The one definitive change in compensation philosophy reinforced is the performance and reward linkage, with top performers receiving twice as much salary increase as compared to average performers. In keeping with the focus on cost and performance, variable pay as part of total compensation continues to grow with 24.8% of Top Executive pay coming through this route and even the lowest rung Officer Cadre getting 11.3% of their salary in variable compensation.

Salary Increase Projections Up across employee levels
As per Hewitt's report, salaries will increase across all employee levels with Junior Manager/ Supervisor/ Professional level expected to receive the highest increase at 10.9%.

Energy, EPC (Infrastructure / Engineering Design), Telecom top salary increase charts
Increased privatization in the power sector, the Government's unrelenting investment and stimulus into infrastructure and increased competition in telecommunications, have earned these sectors the highest salary increases of 12.2% - 12.8%. These are closely followed by steady performers like pharmaceuticals at 12.1%. The automotive sector has sprung back with increased demand and sale over the last two quarters and is strongly positioned at 11.6% average salary increase for 2010.

Guarded outlook by Information Technology and Outsourcing sectors
Technology and Outsourcing sectors have had a big positive swing from 2009, but still stand among the lowest salary increases at 8.9% and 8.5%, followed by Shipping and Logistics at 7.6% which has continued with the same careful watch from 2009.

Biggest recoveries
Banking and Financial Services have seen a positive recovery with salary increase projection for 2010 at 10.5%. This is also the sector that was most adversely impacted by global recession and had minimal bonus coupled with salary freezes.

The Indian retail sector, which was hit by weak consumer sentiment, tight credit situation and unhealthy cost structures, has bounced back, investing in compensation with 11.1% projected salary increase for 2010.

Industries with Maximum Change in Salary Increase Projections from 2009

About Hewitt's Salary Increase Survey
Hewitt surveyed 465 organizations across different ownerships in the 14th annual salary increase survey concluded on 01 March 2010. This being the most exhaustive study in the area of performance and rewards in India - Hewitt analyzed information across 20 primary industries and 27 sub-industries. The study measures actual and projected salary increases, variable pay and performance data across six employee categories, from top executive to manual workforce. The data for the survey was collected over December 2009 – February 2010.

About Hewitt Associates 
Hewitt Associates (NYSE: HEW) provides leading organizations around the world with expert human resources consulting and outsourcing solutions to help them anticipate and solve their most complex benefits, talent, and related financial challenges. Hewitt consults with companies to design and implement a wide range of human resources, retirement, investment management, health management, compensation, and talent management strategies. As a leading outsourcing provider, Hewitt administers health care, retirement, payroll, and other HR programs to millions of employees, their families, and retirees. With a history of exceptional client service since 1940, Hewitt has offices in 33 countries and employs approximately 23,000 associates who are helping make the world a better place to work. For more information, please visitwww.hewittasia.com.