Indian firms dole out double-digit hikes, most employees satisfied

Indian companies have awarded generous increments of more than 10 per cent this year, The Economic Times (ET) has reported. The report cited a survey that said employees in the country received generous hikes despite a tough start in 2023 that saw large-scale layoffs.

Six in 10 people surveyed by Naukri.com received double-digit increments. A fraction of employees surveyed even got hikes up to 20-25 per cent for their exceptional performance, most of these employees worked at entry-level positions, the report said.

As a part of the survey, more than 200,000 responses were collected. Among these, 56 per cent of the respondents said that their companies followed the April-March appraisal cycle.

Expressing his thoughts about the handsome appraisals, chief business officer at Naukri, Pawan Goyal told ET, "This year's appraisal wave embodies optimism, demonstrating the robustness and resilience of the Indian white-collar job market in the face of uncertainties."

Most employees getting appraisals in the April-March cycle were from the Banking, financial services and insurance (BFSI) sector and manufacturing. Most employees working in these domains got an increment of 10-12- per cent.

Moreover, variable and bonus payouts also saw a similar trend and were better or in some cases equal to last year, ET reported.

However, about 25 per cent of employees have not received a hike so far as their employers do not follow the April-March cycle.

The healthy appraisal was mostly associated with sectors such as manufacturing, education, retail, FMCG, and hospitality as most employees working in these sectors got double-digit hikes, the ET report quoted Goyal as saying.

On the other hand, sectors such as IT and business process management saw unexciting appraisals with most employees getting single-digit hikes.

Naukri's survey revealed that around 50 per cent of employees were satisfied with the appraisals they received, ET reported.