Employees in India are expected to see a 9.2 percent salary growth in 2020, the highest in Asia. However, but inflation may play a spoiler as real-wage salaries in the country. Also, is anticipated to be just 5 percent, a report said on Monday.
According to Korn Ferry Global Salary Forecast, India’s salary growth for 2020 stood at 9.2 percent down from 10 percent last year, while real-wage after adjusting inflation may remain constant at 5 percent in 2020.
The report added that India has emerged as the leader of salary growth projection in Asia.
“India has posted a strong growth despite real wages taking a hit globally. With current economic scenario and progressive reforms by the government, there is a sense of cautious optimism across sectors in India that continues to show high salary increments,” Korn Ferry India Chairman and Regional Managing Director Navnit Singh said.
As per the forecast, salaries predicted to grow at a rate of around 4.9 percent globally in 2020. With a global inflation rate prediction of around 2.8 percent, the real-wage salary rise prediction stood at 2.1 percent.
India expected to see a 9.2 percent salary growth in 2020
The highest real wage growth expected in Asia with salaries forecast to grow by 5.3 percent in 2020. However, real-wage salaries expected to 3.1 percent with an inflation rate of 2.2 percent.
“India’s projected average salary increment has seen an average growth of 9.2 percent for 2020 and with low inflation, the real wage increased at 5.1 percent, which is amongst the highest globally”, Roopank Chaudhary, associate client partner – Korn Ferry India said.
He further noted that in line with slower and lower increments across the board, the companies will continue to differentiate their top performers’ high potentials and critical talent sharply.
“Given the increasing cost pressures on the businesses, fixed salary sees a slow growth whereas high performers will continue to see steady growth in total remuneration including performance incentives (short and long term),” he said.
Across Asian countries, Indonesia is likely to have a salary growth of 8.1 percent. However, Malaysia, China, and Korea expected to have a salary growth of 5 percent, 6 percent. Also, 4.1 percent respectively.
The lowest salary growth expected in Japan and Taiwan at 2 percent and 3.9 percent respectively.
The data drawn from Korn Ferry’s pay database which contains data for more than 20 million jobholders. However, in 25,000 organizations across more than 130 countries.
It shows predicted salary increases as forecasted by global HR leaders for 2020. However, compares them to predictions made at this time last year regarding 2019. It also compares them to 2020 inflation forecasts from the Economist Intelligence Unit.