Good news for Indian employees! Country to witness maximum salary hike among Asian countries in 2019

It is good news for Indian employees, their salaries are expected to rise by 10 per cent in 2019 - highest among the Asian countries. According to a report by global consulting firm Korn Ferry, India continues to enjoy the highest overall salary increases and real-wage growth in Asia as a result of rapid economic growth. However, it added that inflation may play a dampener capping the hike at 5 per cent. "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.

Overall, the Asian countries will witness a salary increase of 5.6 per cent this year.

The 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. Singh said that companies need to take a broader perspective to define their business strategy as the demand for skilled workers continues to rise. 

Other than India, the wage hike among Asian countries expected in  Vietnam at 4.8 per cent followed by Indonesia and China at 3.7 per cent and 3.2 per cent, respectively while Japan is expected to see the lowest salary increase at 0.1 per cent in 2019. 

Korn Ferry’s experts suggest that leaders look at salaries as part of an overall compensation package.

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Because inflation is eating away gains, employees might appreciate different benefits, such as more days off, a flexible work schedule, or increased pension plan contributions.

"With inflation rising in most parts of the world, we're seeing a cut in real-wage increases across the globe," Korn Ferry Global Head of Rewards and Benefits Solutions Bob Wesselkamper said.