Are These Salary Raises in Indian BPOs Realistic? Seeking Insights on Industry Standards

I have a small BPO in India. I reside outside of India and am not well-versed with standards in India. My employees in India tell me that most BPOs in India give a 30% raise within 3-6 months of employment and then a 20-25% raise in the subsequent 6 months, thus providing more than a 50% raise in the very first year itself. After that, there is a 15-20% raise every 6-12 months thereafter.

I do find it excessive. Can somebody comment on it and tell me what the usual increments are for an average performing employee in the first 1-2 years of their job? Also, they say that one month of salary as Diwali bonus once a year is an industry standard. Is it true?

Thanks,
VPA

Hello Mr. Aggarwal,

Please go through the below pasted web links. They may be of use to you.

- [2010 to usher in salary booster for employees | Deccan Chronicle](http://deccanchronicle.com) *(Link updated to site home)* ([Search On Cite](https://www.citehr.com/results.php?q=2010 to usher in salary booster for employees Deccan Chronicle) | [Search On Google](https://www.google.com/search?q=2010 to usher in salary booster for employees Deccan Chronicle))

- *(Link no longer exists - removed)*

- [India Inc gears up for revival with hiring plans, salary hike | mydigitalfc.com](http://mydigitalfc.com) *(Link updated to site home)* ([Search On Cite](https://www.citehr.com/results.php?q=India Inc gears up for revival with hiring plans salary hike mydigitalfc com) | [Search On Google](https://www.google.com/search?q=India Inc gears up for revival with hiring plans salary hike mydigitalfc com))

- [Infosys plans 11 to 13 per cent wage hike- BPO Brigade-The Economic Times](http://economictimes.indiatimes.com/bpo-brigade/Infosys-plans-11-to-13-per-cent-wage-hike/articleshow/2968066.cms)

Also, to give you an idea, the average hike in BPOs in India varies based on the company and process.

Since you have not mentioned whether you own the front office services or back office services, it will be difficult to suggest. Still, you may consider giving an average 15-20% raise every 6-12 months depending on the appraisal system.

Let me know if this information is helpful for you.

Regards,
Gaurav

It is mostly back-office work for about 6 months in business. What is your opinion on a 50% raise within 1 year and 1 month's salary as a Diwali bonus?

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Hello Mr. Aggarwal,

I am considering this as an international back-office process.

Even in this case, if you give them a 50% raise, guess about the future also. Once they become senior like TL or assistant TL down the line, one or one and a half years, would you be able to give them the same hike? For most people, this answer will be 'No'. If you put yourself in the employee's shoes, one always expects a hike, especially at the mid-senior level.

So, I would suggest you give a salary raise of up to 25%-30% so that you have something in your hand if they don't seem happy. But do remember to give an extra hike to employees who exceed the expectations set by the senior members.

Just to remind you that the market has not improved; it's still improving.

And you can give them one month's salary as a Diwali bonus. It would be a good idea to retain employees.

Hope it would be helpful.

Gaurav

Hi Gaurav,

General hikes in call centers are in the range of 15-20%, depending on:

1) Employee's total tenure in the company.
2) Current designation.
3) His importance for the process.

I have come across very few BPO companies that give salary hikes/corrections within 6 months of time. However, there are companies (KPO's) that still have the process of a 6-month pay hike. Bonuses depend on the company's overall performance; however, a small company (in terms of headcount) can use it to retain employees.

Regards, Ram

Increment is based on value addition to the organization. However, a startup business should be strategically positioned. Therefore, it can consider the general practices of other firms in the industry.

Thank you, Ram, for your valuable suggestion.

However, in the case of Mr. Aggrawal, I have considered facts like his company is doing well, which is why he is thinking of giving a 50% raise to employees. Since you can't think of paying if you don't earn well.

Though I have suggested a salary raise of up to 25% - 30%, it purely depends on him to decide how much raise he is going to give.

Gaurav