Salary hike On CTC IT industries

Genearlly IT companies are known to be giving very low hikes(not even matching the inflation rates at times). But let me explain in details.
Since all IT companies are huge with 100k+ employees, they have to devise a system of hikes. What happens is at the entry to junior levels generally double digit hikes are common because it doesnt tax them much. A 15% hike on 5L package is peanuts as compared to the same percentage for a 30L package. So hikes at a lower level can easily run upto 20-30% if performance is good. But as you keep moving up the hierarchy this falls sharply and generally for packages of 20L+ falls to a single digit until and unless the performance is exceptionally good and the resource is too critical for the organization. At that level the range might be 2-10%.
This also helps these companies release average hike numbers of 8-10% easily because it is balanced out across all levels.

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Prakash Kumar10y ago
Accepted answer
Genearlly IT companies are known to be giving very low hikes(not even matching the inflation rates at times). But let me explain in details.
Since all IT companies are huge with 100k+ employees, they have to devise a system of hikes. What happens is at the entry to junior levels generally double digit hikes are common because it doesnt tax them much. A 15% hike on 5L package is peanuts as compared to the same percentage for a 30L package. So hikes at a lower level can easily run upto 20-30% if performance is good. But as you keep moving up the hierarchy this falls sharply and generally for packages of 20L+ falls to a single digit until and unless the performance is exceptionally good and the resource is too critical for the organization. At that level the range might be 2-10%.
This also helps these companies release average hike numbers of 8-10% easily because it is balanced out across all levels.