NEW DELHI: Salaries across industries and sectors are likely to rise by 10 per cent, according to Mercer’s 2016 India Total Remuneration Survey released today. About 54 per cent of these companies are expecting to increase their headcount.The comprehensive survey represents 768 organizations across various industry sectors, according to a Mercer release. Among different industries surveyed, the projected salary increase ranges from 10 per cent to 11 per cent overall, with relatively higher increases for the life sciences and shared services industries. “Over the years, salary increase differentiation across industries has narrowed down. Over the last 3 years, salary increases have stabilized around 10%. We also note that the overall increases including promotions and market corrections, are pegged at 10.8 per cent” according to Ruchika Pal, Principal & India TRS Product Leader, Mercer.Over a five year period, real wage growth has however been steadily rising, on account of reduced inflation, thereby indicating real wage increase for employees and increasing real wage cost for employers. “Against the backdrop of increased demand for talent and high attrition rates, the majority of companies use inflation rate as the basic minimum level to peg their salary increases and engage their employees. The increase in real wages reflects the acute talent demand supply mismatch,” Pal said.The talent shortage story is further accentuated by hiring intentions. In 2017, one in two companies is planning to increase headcount, with Shared Services, Hi-tech and Life sciences leading the pack, similar to what was seen in the past two years. “Largely, organisations are optimistic about delivering business results in 2016. Based on our follow up spot survey, we note that companies are expecting to see a 2-5 per cent increase in business results, over 2015. Companies in India are bullish about growth and will continue to hire and invest in talent.” says Shanthi Naresh, India Business Leader-Talent, MercerMore than 70 per cent companies in hi-tech and shared service are looking to increase their headcount in the next 12 months. Actual variable pay of 17.10 per cent delivered in 2016 was higher than the target of 15.4 per cent indicating that business performance in 2015 was better than 2014 performance, and perhaps even better than expectations. Variable bonuses paid out in 2015 were the highest in the Consumer industry, at 22.1 per cent of annual guaranteed cash.