In the current financial year, the increase in average salary as well as variable pay is expected to be higher than last fiscal's.
Global consultancy firm Deloitte's Annual Compensation & Benefits Trends Survey India for 2015-16 said pharma sector would see the highest projected average increment at 12.1 per cent whereas the lowest rise is anticipated in the retail sector at 9.4 percent.
"The average salary increment across sectors is projected at 10.7 percent in FY 2016, which is 0.4 percentage points higher than previous FY 2015 (10.3 percent)," it said.
The highest projected increments across industries are at the junior management level at 11 percent.
Across 18 sectors, 250 organisations participated in the survey.
According to the survey, average variable pay is expected to be 17.4 percent this fiscal compared to the year-ago period when it stood at 17 percent.
When it comes to sectors, Banking, Financial Services and Insurance (BFSI) is expected to see the highest average variable pay at 19.4 percent whereas the lowest is expected to be in logistics sector at 15.6 percent.
The survey said that "better pay, better career opportunities and need for work life balance" have emerged as top reasons for attrition across industries.
In 2014-15, the highest attrition of 21.9 percent was seen in the ITeS (Information Technology enabled Services) sector.
To bring down attrition and ensure retention of employees, the survey said companies adopt various measures including long term incentive plans.
Other such steps include "strong performance based variable pay, and monetary/non monetary recognition awards," it added.

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