Auto major Tata Motors Limited (TML) said that it would hike wages of its staff for 2009-10 despite unfavorable market conditions due to global slowdown.

S Tambe, Vice President, human resources & corporate administration, TML, said, "There are companies that haven't given a raise this year but we are definitely looking at giving increments this year."

However, the firm has yet to finalize the wage structure which would be in with single digit increase this year.

The company announced the average wage increment of around 12-13 per cent during last three years based on performance of workers. Wages were increased in terms of allowances instead of basic salary hike.

It has also taken back the casual workers in October-November who were retrenched following closure of Tata Motors' Jamshedpur plant due to low demand across recession hit automobile segment.

Country's auto sector is expected to witness steep decline in growth rate for the current financial year due to slump in demand across domestic and international market. The auto industry is expected to grow at three per cent against estimated growth of 16 per cent for the current fiscal.