Mumbai: India and China are likely to lead salary increases in Asia next year, tracking growth in two of the region’s three biggest economies, Hewitt Associates said in an emailed statement.
Salaries in India may grow an average 9.2% in 2010, compared with a 6.3% gain this year, the Lincolnshire, Illinois-based company said. Wages in China may increase 6.7% next year from 4.5% in 2009, it said after a survey of 2,346 firms across 21 Asian nations.
“China and India’s role as the future growth engines of the global economy will continue to add fuel to the ongoing war for quality talent in these two markets,” Hewitt said. “It is not surprising to see the overall increases experienced by these markets, while they continue to lead against most other markets.”
India’s economy may expand 8.1% in 2010 against 5.9% in 2009, the World Bank estimates.
Hewitt projects fewer firms in India will freeze salaries in 2010, compared with China. Six percent of firms in India may freeze wages next year against 26.1% in 2009, it said in a statement dated 20 October. About 8.3% firms in China could freeze salaries in 2010, it said. Hewitt surveyed 283 firms in India and 404 in China.