New Delhi, December 2: The salary growth for employees in India will see a dip of 0.8 percent in 2020, according to a report released on Monday. India's salary growth for 2020 stood at 9.2 per cent, said Korn Ferry Global Salary Forecast. This is down from 10 percent compared to last year. Real-wage salaries in the country are anticipated to be just 5 percent, it added. Despite the dip, the salary growth in India is highest in Asia, according to the report. GDP Growth Rate Sinks Further to 4.5 Percent For Q2 of 2019-20, Fiscal Deficit Crosses Full Year Target.
"India has posted a strong growth despite real wages taking a hit globally. With current economic scenario and progressive reforms by the government, there is a sense of cautious optimism across sectors in India that continues to show high salary increments," Korn Ferry India Chairman and Regional Managing Director Navnit Singh said. At the international level, salaries are predicted to grow at a rate of around 4.9 percent in 2020. Nirmala Sitharaman in Parliament: Growth May Be Down, But No Recession Yet.
"India’s projected average salary increment has seen an average growth of 9.2 per cent for 2020 and with low inflation, the real wage increased at 5.1 per cent, which is amongst the highest globally”, Roopank Chaudhary, associate client partner – Korn Ferry India was quoted by news agency PTI as saying. He further noted that in line with slower and lower increments across the board, the companies will continue to differentiate their top performers high potentials and critical talent sharply.
"Given the increasing cost pressures on the businesses, fixed salary sees a slow growth whereas high performers will continue to see steady growth in total remuneration including performance incentives (short and long term)," he said. The highest real wage growth is expected in Asia with salaries forecast to grow by 5.3 per cent in 2020 and real-wage salaries are expected to be 3.1 per cent with an inflation rate of 2.2 per cent.
Across Asian countries, Indonesia is likely to have a salary growth of 8.1 per cent, whereas, Malaysia, China and Korea is expected to have a salary growth of 5 per cent, 6 per cent and 4.1 per cent respectively. The lowest salary growth is expected in Japan and Taiwan at 2 per cent and 3.9 per cent respectively. (With PTI inputs)