Are you drawing same salary over two years?

Has inflation kept us at the same salary level, even after two appraisal cycles?

Two years ago appraisals were in the range on 10-12 per cent, barring few sectors who offered a double-digit rise in pay packages. In 2014, too, single digit appraisals are expected, moving up to 12-15 per cent for high performers, revealed a TimesJobs.com study. Looking at the inflation rate in the past two years - are we actually at the same income level or worse? Are we actually getting any 'appraisal' as far as take-home package is concerned?

"Net income in the range of 2-3 per cent even after 9 per cent appraisal" - R P Yadav, chairman and managing director, Genius Consultants Ltd

Employees can be classified as high performers, average performers and poor performers. People who are in the bracket of average performers have been getting single digit increment and for the bracket of high performer the increment is between 12-16 per cent.

Since the number of high performers is less than the number of average performers, the increment in appraisal comes almost around 8-9.5 per cent. Considering this if we analyse the net income after considering the inflation rate in the past two years, it is actually between 2-3 per cent.

Unless the industry revival really takes place, which is actually not very much expected in the year 2014-15, due to election and election results, I personally feel that the increment in the net take home package will be low and increment in appraisal will be in single digit, between 8-9.5 per cent.

"No real hike but sector growth provides solace" - Andleeb Jain, group head-HR, Isolux Corsan

Single digit appraisals have been witnesses in many companies last year, especially if we talk of many Brick and Mortar companies the statement is true, but there have been many companies in other sectors where the increments last year have been just a tad over single digits, it has been a mixed bag weighing heavily towards the single digit appraisals.

This year looks no different, with various studies showing various trends, but the ground situation has not been very different from last year, in fact it has worsened slightly. The average hikes this year are expected to be also in the late single digits or at most touching 10 per cent. This translates to a negative real hike, or, no real hike keeping the inflation in view. But if we plot the hike versus profitability growth of the sector or companies, I personally feel it's still an acceptable scenario for the employee.

However, considering the sentiments of Indian as well as global market which is looking forward positively to the coming financial year, it is anticipated that companies will offer a better hike to the top performers/critical talents than compared to the last couple of years.

"Median salaries have remained flattish but a holistic view is recommended" - Saba Adil, head talent, Aegon Religare Life insurance Co. Ltd.

As company's juggle to balance costs and profitability in challenging times, salary increases today are largely led by the company's ability to pay. Median salaries have mostly remained flattish or increased slightly over the last few years. Salary increases, however, should not be looked in seclusion from a total fixed pay or a take home perspective and increases over that, but should also be extended to include variable pay and long term incentives and other benefits, if companies provide for that. Compensation should be looked at holistically considering total emoluments on all elements of pay, benefits such as, car, health insurance and accidental insurance.