Almost all industries witnessed conservative appraisals, with banking, financial services and insurance (BFSI) receiving the least, a survey said.
"Most industries witnessed conservative appraisals that were considerably lower than the two-digit salary hikes seen in the previous year. BFSI (8.1 per cent) followed manufacturing (9 per cent) were hit the most," the survey said.
The survey- "Salary Trends and Attrition rates in Q1 (April-June 2017)"- was conducted by end-to-end online recruitment and career solution portal Wisdomjobs.Com, across 120 companies from 10 industries, including healthcare, BFSI, hospitality, retail, FMCG, pharma, IT, telecom, manufacturing and infrastructure.
The average salary hikes seen among the top sectors saw a drop as compared to the last year.
Ranking on top is pharma at 10.9 per cent followed by healthcare and retail sector at 10.8 per cent.
It was followed by hospitality and IT with 9.9 per cent and 9.8 per cent salary hikes, respectively.
FMCG and telecom gave a hike of 9.6 per cent, while employees in infrastructure got a salary hike of 9.2 per cent.
"Most sectors have seen conservative appraisals first quarter due to several external factors that impacted them in the previous two quarters. The hiring outlook of Indian companies, although still positive, will be characterised by a wait-and-watch approach as they come to terms with the real impact of automation - especially in the IT sector - and the consequent need for re-skilling their employees. This is likely to continue for a couple of quarters before picking up again," Wisdomjobs.Com Founder and CEO Ajay Kolla said.
The average salary hikes seen in the top cities are not very encouraging.
Bangalore tops at a 9.7 per cent followed by Chennai and Pune at 9.1 per cent and 9 per cent, respectively.
Hyderabad, Mumbai and Kolkata showed nearly similar rates at 8.9 per cent, 8.7 per cent and 8.5 per cent, respectively.
The capital city, Delhi, showed the lowest hike rate at 7.7 per cent, the survey said.
Further, the survey revealed that while layoffs, especially in the IT sector, contributed to maintaining the overall attrition levels, voluntary resignations declined in the first quarter of this year.
"This can be attributed to the uncertainty in the job market, and the consequent slowdown in hiring across most sectors," Kolla added.
The highest attrition being in IT at 24 per cent followed by telecom at 22 per cent and hospitality at 20 per cent.
The lowest attrition was seen in the manufacturing sector at 11.1 per cent.
When it comes to the city-wise attrition, Delhi was found to have the highest rate at 11.6 per cent, followed by Chennai and Hyderabad at 10.8 per cent and 10.2 per cent, respectively.
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