Indian employees to get highest pay hike

By agencies   |   Tuesday, 04 October 2005, 19:30 IST
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NEW DELHI: The salary story in India seems to get better every year. A new survey has said that employees in India are expected to get the biggest pay hikes in 2006 with a 11.3 percent increase year-on-year. The survey by Mercer Human Resource Consulting said the sustained growth in the Indian economy and low inflation rates would be the biggest contributors to this wage hike. The Indian wage hike will outpace even countries like China, Japan, UK and U.S. The survey said average wages in India would rise 11.3 percent, outpacing inflation by 7.3 percent. In comparison, the average global salaries are forecast to rise by 2.4 percentage points above inflation in 2006 as against 1.9 percent this year. Though this comes as a bit of good news for Indians, development industry experts have warned that this could hurt the country’s competitiveness. Analysts pointed out that the sharp hikes could hurt the interests of hi-tech firms as Western clients may be encouraged to shift jobs to smaller Indian cities, and even other countries.