MUMBAI: There’s good news on the salary front. Management consulting firm Korn Ferry has predicted salaries would increase by 10% in India this year as compared to 9% in 2018. Inflation-adjusted real-wage increases are expected to inch up to 5% from 4.7%.
India leads the salary growth forecast in Asia, with pay increases in the country nearly double those in Asia. According to the Korn Ferry forecast, salaries in Asia are expected to increase by 5.6%, up from 5.4% last year. “Consequent to rapid economic growth, India continues to enjoy the highest overall salary increases and real-wage growth in Asia,” said Navnit Singh, chairman & regional managing director, Korn Ferry India.
Inflation, which is on the rise in most parts of the world, is expected to eat into real-wage increases. “While inflation indices are a solid benchmark for reviewing market trends in pay, we recommend that companies take a broader perspective to define their business strategy and cost drivers in view of increasing automation, use of new technology and the rising demand for skilled workers. Compensation programmes need to be regularly reviewed to make sure they align with changing business and market conditions,” Singh added.
In the Middle East, wages are expected to increase by 3.6% (from 3.8% in 2018), while in the Pacific it’s forecast to grow by 2.5%. Australia will see a 2.5% top-line growth and employees in Eastern Europe are set to see an average pay increase of 6.6% in 2019. In the UK, wages are forecast to go up by 2.5, while employees in France and Germany are expected to see real-wage hikes of 0.5% and 1% respectively. Top-line salaries are predicted to increase by 7.7% in Africa and Egypt could see a 15% hike. However, a 14% inflation rate would reduce real-wage increases.
Employees in Latin America are forecast to see a 4.6% gain in wages, while North America could see a salary growth of 2.8%. In the United States, an average 3% pay increase has been forecast.
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