Salaries to rise 11% in India; factoring inflation, 3.4%
Employees in India will see their salaries increase by an average of 10.9% in 2015, but high inflation will end up eroding much of their wages, says a report.business Updated: Nov 09, 2014 16:45 IST
Employees in India will see their salaries increase by an average of 10.9% in 2015, but high inflation will end up eroding much of their wages, says a report.
"Although wage increases in India are among the highest in Asia, once inflation is taken into account salaries will rise only 3.4% on average next year," ECA International regional director of Asia, Lee Quane, said.
Indian workers are expected to feel slightly better off next year amid decreasing inflationary pressures.
"Nevertheless, with inflation expected to be slightly lower next year, wages will increase more in real terms in 2015 than they did this year when they rose just 2.7% above inflation," Quane said.
Average salary across Asia Pacific is set to rise 7.2% in 2015, while Indian employers are expected to dole out a hike of 10.9%.
According to the survey by ECA International, the biggest pay rises in the region have been forecast in Pakistan where companies are anticipating 12% rise on an average, followed by Vietnam in the second position and India in the third position.
But the configuration changes vastly once inflation is taken into consideration. Vietnam would feel the best off in Asia, followed by China in the second place and Pakistan in the third place respectively.
In the Asian region, once inflation is taken into account, India's place falls to seventh on the list, lower than Thailand (4th), Bangladesh (5th) and Sri Lanka (6th).
Employees in Japan would see the region's lowest wage hikes next year as much of the 2.3% increase is likely to be eroded by inflation, the report said.
On the other hand, companies in mainland China are planning to award an average 8% salary increases again next year. Even after inflation, staff there will be among the best off within the region and globally: they can expect to see rise of 5.5%.
On average, salaries in Asia are expected to increase by 7.2% in 2015 and after factoring in inflation it will average 2.7%, higher than the other regions surveyed.
According to company predictions from around the globe, wages would rise 5.8% on an average in 2015, slightly up on this year's 5.6% average.
This year's survey was based on information collected from 340 multi-national companies across 66 countries and regions. More than 100 companies provided data on their India-based staff.