Manufacturing sector doles out low salary hikes this year
An analysis of pay trends by MANCER Consulting has showed that salary increases in manufacturing and engineering industries this year have been lower than 18 per cent witnessed in 2013.
Most of the salary increments happen in the first half of the calendar year, it said. The senior level employees in manufacturing and engineering industries received an average hike of 12-13 per cent while junior staff got around 10 per cent in increments, this year.
‘Owing to the rise in production and fuel costs in the recent past as well as lack of focus on policies
that could enhance the growth of these sectors, many companies gave low salary hike,’ MANCER Consulting CEO Satya D Sinha said.
‘However, the companies are now hoping that the Narendra Modi government would bring in reforms that would help the sector grow as well as help salaries pick up in 2015,’ he added.
Meanwhile, one of the highest salary hikes for 2014 was seen in the pharmaceutical and healthcare industry. While pharma firms doled out an average salary hike of 13 per cent in 2014 compared to 11 per cent last year, healthcare employees got an average increment of 14 per cent over 10 per cent last year.
‘Factors such as the large pipeline of impending patent expiries, India's sustained efforts to gain Abbreviated New Drug Application (ANDA) approvals and the steady increase in the number of Indian formulation companies entering the US and Europe reinforce our confidence on the healthy growth prospects over the next 5 years and thus,’ Sinha said.
‘These above factors would help hikes in compensation since the experienced teams would be worth seeking in all top brands,’ he added.