According to experts, companies have raised salaries to as high as 40 per cent especially at the junior levels with day-to-day living turning costlier.

Inflation has been at high levels due to soaring prices of essential commodities in recent times.

From in.news.yahoo.com:

Last month, inflation climbed to 8.31 per cent as compared to 8.23 per cent in January. Food inflation stood at 9.42 per cent in the week ended March 5.

As such attrition rates along with inflation had prompted companies to enhance the overall basic salary structures to “15-20 per cent at all the employment levels”, Gi Staffing Services’ Branch Head (Mumbai) Swapnil Jain said.

India is expected to see one of the highest salary hikes this year at 12.9 per cent, according to global HR consultancy Aon Hewitt. Last year, actual increase was around 11.7 per cent.

“Inflation decreases the propensity to save; therefore the organisations try and match up to the salary packages of the employees to the same extent,” Elixir Web Solutions’ HR Manager Geeta Verma said.

Elixir is a leading recruitment process outsourcing firm. “The hike in inflation rates has enabled organisations to provide competitive salaries so that ratio of expenses/savings remains proportionate to the increasing levels of inflation,” Verma noted.

Executive search firm GlobalHunt’s director Sunil Goel told PTI, “Inflation has affected the salary hikes towards the higher side.”