Indians to get highest salary in '07

NEW DELHI: The year 2007 promises to be a harbinger of higher salary for Indians, as wage increments are predicted to be the highest in the world, says a new survey.

"Indian workers are set to receive the highest raise, with companies forecasting annual salary hike of 12 per cent resulting in real wage increase of seven per cent once inflation has been taken into consideration," a latest survey by ECA International said.

In terms of real wage increase in 2007, India tops the chart of the 45 countries under the survey including Indonesia and China, ECA International added.

Real wage increase is defined as a worker's actual annual salary hike after inflation is taken into account.

Out of the 45 countries included in the survey, the five highest real salary hike for 2007 are all expected in Asia.

Indian workers are set to receive the highest raise, with predicted annual salary hike of 12 per cent and with inflation being taken into consideration it would amount to a real wage hike of seven per cent, the survey added.

Indonesians along with mainland Chinese are expected to benefit from real wage increase of about 6 per cent, while Philippines and Thailand, with hike of four per cent each, come at fourth and fifth ranks respectively.

ECA is worlds largest membership organisation for international human resources professionals. It establishes actual and predicted salary hike in local markets around the world.

The survey is used by multinational firms to help them determine future wage hike at home and in other markets. Vietnamese managers are expected to receive lowest real wage increases in Asia, with high inflation cancelling out sizeable salary increase, the survey added.

Interestingly, real wage increase in Hong Kong are forecasted to be 1.5 per cent, while raise in Japan, Taiwan, Korea Republic and Malaysia are likely to be between two per cent and 3.5 per cent, much lower than India's seven per cent.

The talent shortage in many Asian economies manifested at senior management levels where most significant salary increase are occurring, leading to a widening gap between junior and senior management levels, the survey added.

The salary hike in India and China at all management levels are outpacing the raise in more developed Asian economies, such as Singapore and Japan.

"While one does not expect senior salary levels to be in line with more mature economies in Asia within the next couple of years, the fast growth of salary levels in the rapidly developing markets in Asia presents a huge challenge to HR," ECA International General Manager Lee Quane said.