India is likely to once again report the highest salary growth in Asia, but inflation might affect growth in real-wage salaries substantially, a report said. This remains consistent with salary growth trends seen during last year.
According to Korn Ferry Global Salary Forecast, salaried class in India will see their paycheques rise by 9.2 per cent in 2020, slightly down from 10 per cent seen last year. However, real wages after adjusting inflation may see an increase of only 5 per cent, the same as the last year.
"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 told PTI.
In the rest of Asia, real wage in China is likely to grow at 2.9 per cent, down from 3.2 per cent last year and 4.2 per cent the year before. Meanwhile, Japan is expected to see a real-wage growth of 0.6 per cent, up from last year's prediction of 0.1 per cent. Singapore's real wage growth forecast has gone up from 3.6 per cent real-wage increases is up from 3.0 per cent last year.
"Salaries are predicted to grow at a rate of approximately 4.9 per cent globally in 2020. With a global inflation rate prediction of approximately 2.8 per cent, that puts the real-wage salary increase prediction at 2.1 per cent," Korn Ferry said in its report.
The report noted that Asia is expected to see the highest real wage growth in the world, with salaries likely to grow by 5.3 per cent in 2020. With an inflation rate of 2.2 per cent, real-wage salaries are expected to be 3.1 per cent, Korn Ferry added.
"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)," Roopank Chaudhary, associate client partner - Korn Ferry India told PTI.
The data was drawn from Korn Ferry Digital's pay database, which contains data on more than 20 million job holders in 25,000 organizations from over 130 countries.
It shows predicted salary increases, as forecasted by global HR leaders, for 2020 and 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.