Wages in India will likely increase 9.2% in 2020; real salary adjusted for 5% inflation: report
NEW DELHI: Employees in India are expected to see a 9.2 percent salary growth in 2020, the highest in Asia, but inflation can be an obstacle as real wages in the country are expected to be only 5 percent. cent, said a report on Monday.
According to the Korn Ferry Global Salary Forecast, India's salary growth for 2020 stood at 9.2 percent below 10 percent last year, while the real salary after adjusting inflation can remain constant at 5 percent in 2020.
The report adds that India has become the leader of the wage growth projection in Asia.
India has registered strong growth despite the fact that real wages have been affected worldwide. With the current economic scenario and progressive reforms by the government, there is a sense of cautious optimism in all sectors of India that continues to show high salary increases, said Korn President Ferry India. and regional managing director Navnit Singh said.
According to the forecast, wages are forecast to grow at a rate of around 4.9 percent worldwide in 2020. With a prediction of the global inflation rate of about 2.8 percent, the prediction of the increase in real wages will be stood at 2.1 percent.
The highest real wage growth in Asia is expected to predict that wages will grow 5.3% in 2020 and that real wages will be 3.1% with an inflation rate of 2.2%.
The projected average salary increase in India has experienced an average growth of 9.2 percent by 2020 and with low inflation, real wages increased by 5.1 percent, which is among the highest worldwide, said Roopank Chaudhary, associate client partner - Korn Ferry India.
In addition, he noted that in line with slower and lower increases in all areas, companies will continue to differentiate their high potentials and critical talents of high performance.
Given the increasing cost pressures in companies, the fixed salary sees slow growth, while high-performance ones will continue to see steady growth in total compensation, including performance incentives (short and long term), he said.
In all Asian countries, Indonesia is likely to have a salary growth of 8.1%, while Malaysia, China and Korea will have a salary growth of 5%, 6% and 4.1% respectively.
The lowest wage growth is expected in Japan and Taiwan at 2 percent and 3.9 percent respectively.
The data was obtained from the Korn Ferry payment database that contains data from more than 20 million job holders in 25,000 organizations in more than 130 countries.
It shows the expected salary increases as predicted by the world leaders in human resources for 2020 and compares them with the predictions made at this time last year with respect to 2019. It also compares them with the inflation forecasts for 2020 of the Unit of Intelligence of The Economist.