Salaries in India likely to rise by 9.2% in 2020
GLOBALLY, SALARIES
ARE PREDICTED TO GROW AT A RATE OF ABOUT 4.9% IN 2020
NEW DELHI: Employees in India are expected to see a 9.2% salary growth in 2020, highest in Asia, but inflation may play a spoiler as real-wage salaries in the country is anticipated to be just 5%, a report said on Monday.
According to Korn Ferry Global Salary Forecast, India’s salary growth for 2020 stood at 9.2% down from 10% last year, while real-wage after adjusting inflation may remain constant at 5% 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 are predicted to grow at a rate of around 4.9% globally in 2020. With a global inflation rate prediction of around 2.8%, the real-wage salary rise prediction stood at 2.1%.
The highest real wage growth is expected in Asia with salaries forecast to grow by 5.3% in 2020 and real-wage salaries are expected to be 3.1% with an inflation rate of 2.2%.
“India’s projected average salary increment has seen an average growth of 9.2% for 2020 and with low inflation, the real wage increased at 5.1%, 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 a 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%, whereas, Malaysia, China and Korea is expected to have a salary growth of 5%, 6% and 4.1% respectively.