A salary hike is one of the most important factors in career growth. Employees expect a raise based on their performance, industry trends, and overall market conditions.
But what is the average salary hike in the market? Let’s break it down in simple terms.
What is a Salary Hike?
A salary hike is an increase in an employee’s salary, usually given annually or during promotions. It can be a percentage-based increase or a fixed amount added to the salary.
For example, if your salary is ₹50,000 per month and you get a 10% hike, your new salary will be ₹55,000 per month.
Average Salary Hike in India
Salary hikes vary across industries, experience levels, and job performance. However, the average salary hike in India typically falls within these ranges:
- Low performers: 2% to 5%
- Average performers: 6% to 10%
- High performers: 12% to 25%
- Job switchers: 30% to 50% (sometimes even more)
Factors Affecting Salary Hikes
1. Performance-Based Salary Hike
Employees who consistently perform well and meet targets receive a higher salary increase. Companies reward top performers with better raises to retain talent.
2. Industry Trends
The industry you work in plays a big role in salary hikes. Some industries offer higher raises than others based on demand and revenue growth.
3. Job Market Conditions
If there is high demand for a particular job role, companies offer higher hikes to attract and retain employees.
4. Company Profitability
Companies with strong revenue growth and profits provide better salary hikes compared to struggling businesses.
5. Inflation Rate
Many companies adjust salaries based on inflation so that employees can maintain their purchasing power.
Industry-Wise Salary Hike Trends
1. IT & Software – 8% to 15%
The IT sector generally offers good salary hikes, especially for employees with in-demand skills like AI, cloud computing, and cybersecurity.
2. Banking & Finance – 7% to 12%
Banks and financial institutions offer competitive hikes, with investment banking and fintech professionals getting the highest raises.
3. Healthcare & Pharma – 6% to 10%
Medical professionals, researchers, and pharma executives receive steady salary growth based on experience and expertise.
4. Manufacturing & Engineering – 5% to 10%
Salary hikes in this sector depend on business growth, automation trends, and economic conditions.
5. Sales & Marketing – 8% to 20%
Sales professionals often receive high incentives and salary hikes based on performance and revenue generation.
Job Switching vs. Staying in the Same Company
One of the fastest ways to get a significant salary hike is to switch jobs. While staying in the same company may provide an annual raise of 5% to 15%, job switchers often receive a 30% to 50% hike or more.
How to Get a Better Salary Hike?
- Upgrade Your Skills – Learn new technologies or industry trends to stay competitive.
- Prove Your Value – Document your achievements and contributions to justify a salary hike.
- Negotiate Smartly – Research market salaries and negotiate effectively during appraisals.
- Consider Job Switching – If your current company isn’t offering a competitive hike, explore better opportunities in the market.
Conclusion
The average salary hike in the market varies based on performance, industry, and economic conditions. While most employees get 5% to 15% annually, top performers and job switchers can receive much higher hikes.
To maximize your salary growth, focus on improving your skills, negotiating effectively, and considering new job opportunities when needed.