Employees in India are possible to see double-digit salary growth in 2019, but the increase may play a dampener capping the hike at 5 percent, a report said Thursday. According to global consulting firm Korn Ferry, as a result of rapid economic growth, India continues to have the highest generally income increases and real-wage enlargement in Asia. Salaries in India are predictable to augment 10 percent in 2019 as compared to 9 percent last year and inflation-adjusted real-wage hikes are likely to rise to 5 percent from 4.7 percent in 2018.
"Consequential to quick economic growth, India continues to enjoy the uppermost in general income increase and real-wage growth in Asia," said Navnit Singh, Chairman & Regional Managing Director, Korn Ferry India. Singh further said companies should take a broader viewpoint to define their business strategy and cost drivers in view of increasing mechanization, use of new technology and the increasing authority for skilled workers.
"Compensation programmes need to be frequently reviewed to make sure they align with the altering commerce and market conditions," he said. The Korn Ferry 2019 Global Salary Forecast, which predicts real-wage salaries across the world, is based on Korn Ferry's pay database which contains data for more than 20 million job holders in 25,000 organizations across more than 110 countries.
In Asia, salaries are forecast to increase by 5.6 percent, up from 5.4 percent last year. Inflation-adjusted real-wage increases are predicted to be 2.6 percent, the highest internationally, but down from 2.8 percent last year. Among other countries in Asia and China's real-wage forecast for 2019 stood at 3.2 percent, Japan (0.1 percent), Vietnam (4.8 percent), Singapore (3 percent), and Indonesia (3.7 percent).
According to the Korn Ferry forecast, workers in Eastern Europe are set to see an average salary increase of 6.6 percent in 2019. After captivating inflation into account, real salaries are forecast to rise 2.0 percent. In the UK, real wages are predicted to increase by just 0.6 percent.
"With inflation rising in most parts of the world, we're seeing a cut in real-wage increases across the globe," Korn Ferry Global Head of Rewards and Benefits Solutions Bob Wesselkamper said.