Post-Recession Pay Raises: What Increment Percentage Are You Expecting This Year?

Hi,

The recession is behind us, and as we all gear up for performance appraisals and increments, I seek your help. Please let me know what kind of increments we are looking for this year. Thanks in advance.

Dear sushma_hn,

I really don't understand the concept of the question asked. Again, you never specified which industry you are in. I certainly understand the recession part; however, to give a general idea, it would be not less than 7% in any industry.

Remember, you have also not specified the grade of the employee or yourself. So, what I have given you is the general percentage without any industry-specific details.

Considering that there were hardly any increments in salary last year, I think that any increment below 26% is not justifiable.

The inflation since April 2008 till Nov 2009 was 26.31% (based on Consumer Price Index - Urban - Industrial Worker). So, if you received a 0% increment last year, you should get at least a 26.31% increment this year to maintain your 2008 income levels in 'real' terms. However, do not expect this level of increments this year as the recession has just ended, and companies still need to build up their cash flows to that extent.

I believe that a 10% to 15% increment should be ideal in most recession-affected industries, while increments may go up to 20% in the financial and banking sectors. This is just an estimate, and increments would depend on the industry and may also vary among companies within the same industry.

Hi,

Please let me know the appraisal system you are currently using so that I can assist you with the details you are looking for.

Regards,
Glitz

Hi all,

Your question is vague. Please note that the effect of the recession is going to be reflected in this year's P&L. The amount stuck will take time for money to be circulated back into the market. Employees receiving anything above 30% are lucky. Keeping your hard work aside...

Thanks

Hi guys,

As notified in the Business Manager, the average increment would be 15-20% (Mercer study) this year, subject to the condition that companies should have come out of the recession.

Thanks,
Thiru