India’s salary growth to be highest in Asia in 2020

The salary growth in the country is expected to be 9.2%.

India’s salary growth to be highest in Asia in 2020

While inflation may impact the growth in real-wage salaries, India is expected to yet again occupy top position in Asia, in terms of salary growth next year. According to the Korn Ferry Global Salary Forecast, salaries in India will rise by 9.2 per cent next year, which is lower than last year’s 10 per cent.

Real wages, post adjustment for inflation, will see a rise of only five per cent, which is the same as last year.

Even though real wages have dipped across the world, India has shown good growth. But the real wage may grow by only 2.9 per cent as compared to 3.2 per cent last year. Japan will witness 0.6 per cent growth in real wage, as compared to 0.1 per cent last year.

In 2020, salaries are expected to rise at a rate of about 4.9 per cent globally. With the global inflation rate predicted to be about 2.8 per cent, the real-wage salary is predicted to increase by about 2.1 per cent.

Asia is expected to witness the highest real wage growth in the world, with salaries posed to grow by 5.3 per cent next year. The inflation rate is predicted to be 2.2 per cent, whereas real-wage salaries may go up to 3.1 per cent.

With cost pressure on businesses mounting, it is natural for fixed salaries to grow very slowly. However, high performers will witness their incomes growing steadily owing to incentives and salary hikes.

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