India Leads Salary Growth Forecast in Asia – Korn Ferry 2019 Salary Forecast
According to a Korn Ferry forecasts salaries in India are expected to increase by 10.0 percent in 2019 as compared 9.00 percent last year. Inflation-adjusted real-wage increases are expected to be 5.0 percent in 2019, up from 4.7 percent last year.
Navnit Singh, Chairman & Regional Managing Director, Korn Ferry India said, “Consequent to rapid economic growth, India continues to enjoy the highest overall salary increases and real-wage growth in Asia. While inflation indices are a solid benchmark for reviewing market trends in pay, we recommend that companies 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. Compensation programs need to be regularly reviewed to make sure they align with changing business and market conditions.”
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 organizations across more than 110 countries. It shows predicted salary increases, as forecasted by global HR departments, for 2019 and compares them to predictions made at this time last year regarding 2018. It also compares them to 2019 inflation forecasts from the Economist Intelligence Unit.
Highest Real-Wage Growth in Asia
In Asia, salaries are forecast to increase by 5.6 percent, up from 5.4 percent last year. Inflation-adjusted real-wage increases are expected to be 2.6 percent, the highest globally, but down from 2.8 percent last year.
China’s real-wage forecasted growth for 2019 weakened at 3.2 percent, down from 4.2 percent last year. Japan saw a real-wage prediction of 0.1 percent for 2019 compared to the 2018 prediction of 1.6 percent. Apart from India, other Asian countries that saw year-over-year increases in real wages include Vietnam (forecast of 4.8% in 2019 Vs 4.6% last year), Singapore (forecast of 3.0% in 2019 Vs 2.3% last year), Indonesia (forecast of 3.7% in 2019 Vs 3.4% last year)
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