Double-digit salary growth likely this year

Employees in India are likely to see a double-digit salary growth in 2019, but inflation may play a dampener capping the hike at 5 per cent, a recent report by lobal consulting firm Korn Ferry said.

Salaries in India are expected to increase 10 per cent in 2019 as compared to 9 per cent last year and inflation-adjusted real-wage hikes are likely to rise to 5 per cent from 4.7 per cent in 2018. “Consequent to rapid economic growth, India continues to enjoy the highest overall salary increases and real-wage growth in Asia,” said Navnit Singh, Chairman & Regional Managing Director, Korn Ferry India.

Singh further said companies should take a broader perspective to define their business strategy and cost drivers in view of increasing automation, use of new technology and the rising demand for skilled workers. 

The Korn Ferry 2019 Global Salary Forecast, which predicts real-wage salaries across the world, is based on Korn Ferry’s pay database which contains data for more than 20 million job holders in 25,000 organisations across more than 110 countries.

In Asia, salaries are forecast to increase by 5.6 per cent, up from 5.4 per cent last year. Inflation-adjusted real-wage increases are expected to be 2.6 per cent, the highest globally, but down from 2.8 per cent last year. — PTI