According to a new report, India is expected to witness a nominal wage growth of five per cent in 2019, highest such increase across Asia.
However, the real wage growth will stand at five per cent. Real rates are obtained by deducting inflation from the nominal figures. Even after accounting inflation, India will still retain the top spot in Asia.
While the real-wage salaries globally are expected to grow only at an average of 1 per cent in 2019, Asia is expected to see the highest real wage growth regionally, with salaries forecast to increase by 2.6 per cent.
China will experience a real wage growth rate of 1.7 per cent and wages in Japan and South Korea will increase by 0.1 per cent and 2.8 per cent respectively. However, in Brazil, salaries are set to reduce by 0.1 per cent and they will decrease by 0.5 per cent in Qatar.
Turkey and Ukraine will have a real wage growth rate higher than that of India, expanding at 5.5 per cent and 5.9 per cent respectively.
Note For Companies
“While inflation indices are a solid benchmark for reviewing market trends in pay, we recommend that companies take a broader perspective by defining and agreeing upon their own measures of cost drivers, business strategy and local trading conditions,” said Benjamin Frost, Korn Ferry’s Global General Manager – Pay.
“Compensation programs need to be regularly reviewed to make sure they align with changing business and market conditions,” he added.
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