New Delhi: Salaries in India are expected to increase by 16% in 2009, one of the highest in the Asia-Pacific region driven by strong economic growth and pressure on employers due to soaring inflation, a latest report says.
As per a report by the Hong Kong based compensation firm HR Business Solutions (HRBS) pay increases in the Asia-Pacific region are likely grow even as the economies are expected to be impacted by the global slowdown.
“The forecast pay increase in India averaging 16% is one of the highest among all the countries,” the report stated.
The HRBS 2009 pay increase forecast is based primarily on four economic factors - GDP growth, inflation, unemployment, manpower demand and past pay increase trends.
Elaborating further it said that the Indian economy is reported to be cooling, but still it is expected to achieve a growth rate of 7-8% in 2008, which is among the strongest in the region after China.
“In addition, it has the fourth highest inflation rate of over 12% in 2008 which increases pay rise pressures on employers. Labour demand is still robust and there is a lack of sufficient supply of the skills-set required by India’s rapidly growing services, manufacturing, construction and retail industries to boot,” the HRBS report added.
Economic growth rates in Asia are mostly forecast to be moderately lower in 2008 relative to 2007, while inflation rate across the Asia-Pacific region has soared to an all-time high.