Friday, December 01, 2006
Salary hike in India highest in Asia-Pacific
1st December, 2006 - Business Standard
India has reported the highest average salary increase of 13.8 per cent in the Asia Pacific region this year, beating China which has seen a salary increase of 8 per cent.
India’s average salary increase was the highest in the region despite being marginally lower than 14.1 per cent in 2005, according to the annual Asia-Pacific Salary Increase Survey conducted by Hewitt Associates, a global human resources services company. In India, the survey was conducted across 169 organisations.
According to the survey, the average overall salary increase for 2007 could be anywhere between 12.3 per cent to 15 per cent. Employees at professional, supervisor, technical level received the highest average increase of 15 per cent, and are expected to receive same hike again next year.
Senior and top management had the highest percentage of variable pay in total cash compensation at 19.5 per cent. This is expected to rise to 20.7 per cent next year.
After India, it was the Philippines which reported the highest average overall salary increase at 8.2 per cent, while salaries in China rose by 8 per cent, down from 8.3 per cent last year.
However, though employers are reporting pay increases, salary hikes in the region have been modest in comparison to previous years and the trend is likely to continue in 2007, adds the survey.
“Asia’s markets have maintained steady growth in the last year, which has led to a stabilisation of salary increases in most markets during 2006,” the survey said.
Singapore is an exception to this trend. With the strengthening of Singapore's economy, employees experienced average salary increases of 4.6 per cent, up from 3.9 per cent in 2005, demonstrating one of the largest year-on-year hikes.
Meanwhile, Thailand and Malaysia saw raises of 6.5 per cent and 6.2 per cent respectively, marking an increase from 6.3 per cent and 5.6 per cent in 2005.
Salaries also rose in Australia, Korea and Hong Kong. “While organisations are being driven to increase their spend on compensation as a result of the ongoing attraction and retention challenges we are facing in Asia, many companies are reassessing their human resources strategies and broader business goals to ensure they are getting the most out of their talent and increasing productivity," said Nishchae Suri, head of Hewitt's Talent and Organisation Consulting Analytics practice in Asia.
India has reported the highest average salary increase of 13.8 per cent in the Asia Pacific region this year, beating China which has seen a salary increase of 8 per cent.
India’s average salary increase was the highest in the region despite being marginally lower than 14.1 per cent in 2005, according to the annual Asia-Pacific Salary Increase Survey conducted by Hewitt Associates, a global human resources services company. In India, the survey was conducted across 169 organisations.
According to the survey, the average overall salary increase for 2007 could be anywhere between 12.3 per cent to 15 per cent. Employees at professional, supervisor, technical level received the highest average increase of 15 per cent, and are expected to receive same hike again next year.
Senior and top management had the highest percentage of variable pay in total cash compensation at 19.5 per cent. This is expected to rise to 20.7 per cent next year.
After India, it was the Philippines which reported the highest average overall salary increase at 8.2 per cent, while salaries in China rose by 8 per cent, down from 8.3 per cent last year.
However, though employers are reporting pay increases, salary hikes in the region have been modest in comparison to previous years and the trend is likely to continue in 2007, adds the survey.
“Asia’s markets have maintained steady growth in the last year, which has led to a stabilisation of salary increases in most markets during 2006,” the survey said.
Singapore is an exception to this trend. With the strengthening of Singapore's economy, employees experienced average salary increases of 4.6 per cent, up from 3.9 per cent in 2005, demonstrating one of the largest year-on-year hikes.
Meanwhile, Thailand and Malaysia saw raises of 6.5 per cent and 6.2 per cent respectively, marking an increase from 6.3 per cent and 5.6 per cent in 2005.
Salaries also rose in Australia, Korea and Hong Kong. “While organisations are being driven to increase their spend on compensation as a result of the ongoing attraction and retention challenges we are facing in Asia, many companies are reassessing their human resources strategies and broader business goals to ensure they are getting the most out of their talent and increasing productivity," said Nishchae Suri, head of Hewitt's Talent and Organisation Consulting Analytics practice in Asia.
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