Employee base in Indi may cheer as the country is expected to see salary hike in double digits this year as per the global consulting firm. But this shall be limited to just 5%, i.e. net hike or real wage growth shall be capped to this percentage due to the inflation.
A 10% hike is on the cards as against a hike of 9% last year, which meant a 4.7% growth in wage growth. Further the global consulting firm Director, Kom Ferry said, India enjoys the highest overall salary increase together with growth in real wages.
With rise in automation, the companies need to conceive their business strategy based on a broader outlook and when designing the need for new technologies as well as skilled workforce needs to be kept on mind, he added.
"Compensation programmes need to be regularly reviewed to make sure they align with the changing business and market conditions," he said.
In contrast other Asian countries will see inflation-adjusted hike of the order of 2.6% vis a vis 2.8% last year. But gross increase wise, these nations will fare better with an expected hike of 5.6% in comparison to 5.4% last year.
Vietnam's real-wage prediction follows India and is the highest in Asian countries at 4.8%, followed by Indonesia's at 3.7%. For other countries such China prediction stands at 3.2% while for Singapore and Japan, it is 3% and 0.1% respectively.