'Average salary hikes in FY18 likely at 9.7%'

Average increment for the current fiscal (FY18) is expected to be 9.7%, a decrease of 0.6% from 2016-17, while the average projected variable pay across sectors is expected to be 15.4%, which is 0.4% higher than that in FY17, according to the KPMG Annual Compensation Trends Survey 2017-18.

The KPMG survey analyses and brings together findings from 263 companies across 19 sectors such as automotive and auto components, banking and financial services, consumer goods, energy, engineering and manufacturing, infrastructure, construction and real estate, IT & ITeS, life sciences and healthcare, logistics, media & advertising and retail.

The highest increment of 12.5% has been reported by the ecommerce sector while the lowest of 8.1% is for the logistics sector. The maximum decrease is being projected by the banking and financial services sector, where financial services sector has decreased the increment from 9.7% to 8.1%, the survey states.

The financial services sector reported the highest variable pay of 20.7 % while the energy sector reported at 10.1%. This indicates that organisations are continuing to move towards paying for performance and variable pay holding a higher percentage in the cost to company (CTC), the survey states, adding that the highest voluntary attrition of 20.4% is reported by ecommerce, while the lowest of 8.1% being reported by energy sector.