Indian workers might get their highest salary hike in 2016 as compared to the last three years. The rate has been pegged at 4.75% as compared to 2.1% in 2015 and 0.2% in 2014, the Korn Ferry Hay Group 2016 Salary Forecast says.
Workers are expecting a 2.5% raise globally, the highest in three years. The primary reason is the historically low inflation.
"The 2015 salary forecast for India stood at 10.5 per cent. For 2016, the forecast is only marginally lesser at 10.3 per cent. However, at the same time, Indian workers are likely to see highest real wage increase at 4.7 per cent, compared to 2.1 per cent last year," Amer Haleem, Business Manager, Productized Services, Hay Group India said in a release.
"The highest salary growth predicted in Asia is not surprising, given the war for talent in the region. Globally too, the forecast is better, with the salary rise expected to be the highest in three years. Companies are more focused than ever before on flexibility. They are willing to customise their strategies, even in link with rewards. The effort to retain talent can be directly linked to this," he added.
Globally, the highest real wage growth will be in Asia, where, according to the Korn Ferry Hay Group forecast. Real wages are expected to rise by 4.2%, the highest across the world.