NEW DELHI: Salaries in the IT and ITeS sectors are expected to grow at 16 percent and 15.4 percent respectively for 2006, while the fastest average growth in salary is expected to be seen in the asset management companies (AMC) of 16.6 percent.

According to the 10th annual salary survey conducted by Hewitt Associates, in India average salaries are expected to rise by 13.8 percent in 2006, a minor drop from the 2005 figure of 14.7 percent. India has also reported highest average increase in salaries across Asian countries.

In 2005, at 17.1 percent AMC in India awarded the highest average salary increases, followed by IT (16.5 percent) and ITeS (16.1 percent). The survey further shows that salaries are slowly getting stabilized in India and no dramatic movements are taking place. The salary survey covered 29 industries, 652 countries and 900,000 employees. It was conducted to measure actual and projected salary increases, and compensation packages of five specific job categories, namely – senior/top management, manager, professional/supervisor/technical, clerical/support and manual workers.

According to the survey, the professional/supervisor/technical employees can expect the highest salary hike of 15.1 percent this year. Hewitt Associates Asia Pacific business consulting leader Nishchae Suri said, “The IT sector would remain in the limelight in 2006 with new avenues opening up. The growth would come from car companies setting up design centers, fabrication deals coming through, increase in domestic demands, etc.”

The study also highlights that the use of variable pay as a strategic lever continue to be an important means of attracting and retaining talent, with 89 percent of respondents saying they have variable pay plans in 2005. The survey also revealed that companies are increasing focused on measuring and managing performance with 99.5 percent saying they have formal platforms for performance management and a growing number of companies saying they are conducting biannual performance reviews.