New Delhi: Employees are expected to see an average 10 per cent increase in salary in 2017, lower than 10.3 per cent rise this year, and after taking inflation into account, the hike would be a paltry 4.8 per cent, says a report.
According to Korn Ferry Hay Group 2017 Salary Forecast, India salary growth is pegged at 10 per cent, while real wages are expected to rise by 4.8 per cent.
“Salary hikes in India, although still higher than many other countries across the globe, have stabilised and we expect them to be in the 9.5-10.5 per cent range in the next couple of years,” Amer Haleem, Country Manager, Productized Services, Korn Ferry Hay Group said.
Haleem further noted, “We expect them to at the higher end of the range for entry level positions, given that our salaries are much lower at that level compared to most countries, even those within Asia”.
In Asia, salaries are forecast to increase by 6.1 per cent – down 0.3 per cent from last year, while real wages are expected to rise by 4.3 per cent – the highest globally.
The largest real wage increases are forecast in Vietnam (7.2 per cent), Thailand (5.6 per cent) and Indonesia (4.9 per cent).
The report noted that adjusted for inflation, workers around the world are expected to see real wage increases of 2.3 per cent, down slightly from last year’s prediction of 2.7 per cent.
“Although not as high as last year when we saw a three- year high, there are still positive real wage gains across the globe,” said Benjamin Frost, Korn Ferry Hay Group Global Manager – Pay.
Despite the turmoil following the Brexit decision, the United Kingdom is expected to see raises of 2.5 per cent (the same as the last three years). Adjusted for inflation, real wages are to increase by 1.9 per cent in 2017, which is slightly higher than the Western European average.
Workers in France and Germany are forecast to see real wage rises of 1.5 per cent and 2.2 per cent respectively.
“The global labor market is in flux as slower economic growth in mature economies keeps a check on pay rises. In emerging economies, upskilling workers is crucial for companies to maintain a competitive advantage – and those skilled employees can expect to see wages rise as talent shortages in certain regions drive salaries up,” Frost said.
The data was drawn from Hay Group PayNet which contains data for more than 20 million job holders in 25,000 organizations across more than 110 countries.