India Lo 10.9% Salary Hike In 2015

[dalda]

New Delhi: Employees in India will see their salaries increase by an average of 10.9 per cent in 2015, the third highest pay rise in Asia after Pakistan and Vietnam, says an ECA International report.

According to the latest Salary Trends survey by ECA International, the biggest pay rises in the region have been forecast in Pakistan where companies are anticipating 12 per cent rises on an average. For Indian employees the average hike has been forecast at 10.9 per cent.

Although wage increases in India are among the highest in Asia, salaries would rise only 3.4 per cent on average next year if inflation is taken into account,

"Nevertheless, with inflation expected to be slightly lower next year wages will increase more in real terms in 2015 than they did this year when they rose just 2.7 per cent above inflation," ECA International regional director for Asia, Lee Quane said.

In the Asian region, once inflation is taken into account, India's place falls to seventh on the list, while Vietnam tops the chart and Pakistan slips to the third position.

While China would occupy the second place. Thailand, Bangladesh and Sri Lanka would be placed in fourth, fifth and sixth places, respectively, in real terms.

Employees in Japan would see the region's lowest wage hikes next year and much of the 2.3 per cent increase is likely to be eroded by inflation, it says.

Meanwhile, companies in mainland China are planning to award an average 8 per cent salary increases again next year. Even after inflation, staff there will be among the best off within the region and globally: they can expect to see rise of 5.5 per cent, says the report.

On average, salaries in Asia are expected to increase by 7.2 per cent in 2015 after factoring in inflation. Moreover, in terms of real wage rises (after taking inflation into account) it will average 2.7 per cent, higher than the other regions surveyed.

According to company predictions from around the globe, wages would rise 5.8 per cent on an average in 2015, slightly up on this year's 5.6 per cent average.

This year's survey was based on information collected from 340 multinational companies across 66 countries and regions. More than 100 companies provided data on their India-based staff.

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