7/28/2019 Article on Employee Compensation

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Companies keep salary outgo in check to protectmarginsBakul Chugan Tongia, ET Bureau Jun 11, 2013, 04.15AM IST

Tags: salary | S&P BSE 500 | Indian corporates | fmcg | Financial Services | BSE

(Indian corporates have,)

Indian corporates have managed to contain their average employee compensation as a proportion of sales over the past two fiscal years as they battle to protect margins and deal with a sluggish revenuegrowth in a slowing economy.

An ETIG analysis of the employee cost to sales ratio of companies listed on the S&P BSE 500 indexshows that Indian corporates have, on an average, paid 8.3% of their revenue as salaries toemployees in FY13, which is just about 20 basis points higher over FY12. The employee cost trendindicates that the average employee compensation as a proportion of sales in FY12 and FY13 is thelowest for BSE 500 companies in the past six years. While FY10 was one of the better years for employees with the average wage cost to sales ratio over 9%, it was close to 9% in FY11 and FY09and about 8.6% in FY08.

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7/28/2019 Article on Employee Compensation

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