A turnaround is expected globally during 2015 in terms of salary, with companies in India likely to dole out an average pay hike of 10.5 per cent, says a report.
According to HayGroup’s 2015 salary forecast, salaries across the globe are set to rise by an average 5.4 per cent in 2015 as compared with 5.2 per cent last year.
“This year we are seeing a big turnaround when salary rises are compared with predicted inflation rates,” a Haygroup report said, adding that “in some emerging markets — the boom area of the last ten years — real wages are falling”.
Among Asian economies, India is expected to see a salary rise of 10.5 per cent, followed by Indonesia at 10 per cent, China (8 per cent), Philippines (7.5 per cent), Malaysia (6.4 per cent), Thailand (6 per cent), Korea (5 per cent), Singapore (4.4 per cent) and Hong Kong (4 per cent).
According to the report, real pay (after taking inflation into account) is now rising in many European markets with previously struggling economies such as Greece and Ireland showing signs of recovery with small real rises.
The slowdown in Russia, Brazil and Ukraine was mirrored with real wage cuts, while high inflation erodes salaries in Latin American countries such as Venezuela and Argentina.
While the Latin America regional average stood at 9.7 per cent, Africa regional average at 6.9 per cent, Asia regional average was 6.8 per cent, middle east (5.6 per cent), Europe (3.1 per cent) and North America (2.8 per cent).
Haygroup further noted that salaries are still rising in some Asian markets as the war for talent continues and globally Asia is likely to see the highest growth in real salaries in 2015.
The pay database was drawn from 16 million people in 24,000 organisations to show predicted salary increases forecast for 2015. We have compared them to inflation forecast data from Economist, October 2014.