Good News for Indian Employees: Salaries in India to Increase by 10 Percent in 2019, Korn Ferry Report
Bangalore: Salaries in India are expected to rise by 10.0 percent in 2019 as compared to 9.00 percent last year, according to Korn Ferry report. The report also says that the inflation-adjusted real-wage increments are expected to be 5.0 percent in 2019, up from 4.7 percent last year.
Speaking about the report, Navnit Singh, Chairman & Regional Managing Director, Korn Ferry India says, “Consequent to rapid economic growth, India continues to enjoy the highest overall salary increases and real-wage growth in Asia. While inflation indices are a solid benchmark for reviewing market trends in pay, we recommend that companies take a broader perspective to define their business strategy and cost drivers in view of increasing automation, use of new technology and the rising demand for skilled workers. Compensation programs need to be regularly reviewed to make sure they align with changing business and market conditions.”
The Korn Ferry 2019 Global Salary Forecast based on Korn Ferry’s pay database which holds data of over 20 million job holders in 25,000 companies of over 110 countries foretells real-wage salaries worldwide. The database gives predicted salary rises, as projected by global HR departments, for 2019 and compares them to predictions made at this time last year regarding 2018, and also to 2019 inflation forecasts from the Economist Intelligence Unit.
Greatest Real-Wage Growth in Asia
Coming to Asia, salaries are projected to rise by 5.6 percent, up from 5.4 percent last year, and Inflation-adjusted real-wage increases are expected to be 2.6 percent, the biggest globally, but down from 2.8 percent last year. According to the report, while China’s real-wage forecasted growth for 2019 declined at 3.2 percent, down from 4.2 percent last year, Japan saw a real-wage prediction of 0.1 percent for 2019 compared to the 2018 prediction of 1.6 percent. The report also says that other Asian countries that saw year-over-year improvements in real wages include Vietnam (forecast of 4.8 percent in 2019 Vs 4.6 percent last year), Singapore (forecast of 3.0 percent in 2019 Vs 2.3percent last year), and Indonesia (forecast of 3.7 percent in 2019 Vs 3.4 percent last year)
The rest of the globe
Employees in Eastern Europe are predicted to see an average salary increase of 2 percent after accounting for inflation, and in Western Europe, salaries are forecast to increase by only 0.7 percent. Employees in two of Europe’s largest economies, France and Germany, are forecast to see real-wage rises of 0.5 percent and one percent respectively. Wages are predicted to increase 2.5 percent in the United Kingdom, however, with a 1.9 percent inflation rate, real wages are expected to increase by 0.6 percent. In North America, both the United States & Canada are predicted to achieve a real-wage growth of 0.6 percent.
In the Middle East, wages are expected to increase by 3.6percent, compared to 3.8 percent last year. Inflation-adjusted wage increases are predicted to be 0.4percent. In Latin America, employees are forecast to receive an average real salary increase of 1.3percent. The Pacific sees the lowest prediction in real salary increases, with an inflation-adjusted forecast of only 0.3 percent.
Although top-line salaries will increase by 7.7 percent in Africa, high inflation means the real increase is predicted to be only 0.9 percent. For instance, in Egypt, on average salaries are expected to increase by 15 percent, but a 14.4 percent inflation rate means employees will only see a 0.6 percent real-wage increase.
Korn Ferry unveils that adjusted for inflation, real-wage salaries globally are supposed to grow only an average of one percent in 2019. This is down from a 1.5 percent prediction for 2018. “With inflation rising in most parts of the world, we’re seeing a cut in real-wage increases across the globe. The percentage of salary increase or decrease will vary by role, industry, country and region, but one thing is clear, on average, employees are not seeing the same real pay growth they did even one year ago,” adds, Bob Wesselkamper, Global Head - Rewards & Benefits Solution, Korn Ferry.
Korn Ferry is a global organizational consulting firm, synchronizing strategy and talent to drive superior performance for its clients. Korn Ferry provides end to end support to organizations who want to transform their business and guides businesses through each critical step in their organizational growth and evolution.
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