New Delhi: Salaries in India are projected to rise faster than any other major Asian country for the fourth straight year in 2007, as companies across the region remain under pressure to retain talent, a global human resources company said.
An annual survey by Hewitt Associates revealed Thursday that Indian salaries are likely to rise an average 14.5 percent in 2007, with banks and financial services companies offering the biggest hikes.
The Philippines is expected to come a distant second with salary increases averaging 8.9 per cent, and in China, salaries are likely to rise 8.2 per cent, the survey said.
While pay hikes are expected to moderate in most Asian countries in coming years, India will likely sustain the momentum, it said.
''The war for talent is becoming increasingly fierce in India,'' said Sharad Vishvanath, a Hewitt executive involved with the survey. ''As a result, compensation plays an increasingly fundamental role in attracting talent and ensuring ongoing employee engagement.''
Indian paychecks for salaried individuals in the private sector are expected to eventually reach the same levels as developed Asian economies like Japan and Singapore, said the survey which looked at 1,500 Asian companies of which 580 are in India.
Hewitt did not give an estimated timeframe for this parity to happen and did not provide a margin of error.
India's booming economy, which has averaged about 8.5 per cent growth in the past five years, coupled with growing corporate earnings have driven up salaries, the survey said.
But its findings also underscored the fact that much of the gains from the rapid economic expansion have been limited to urban India.
The survey measured actual and projected salary increases, and compensation practices for five specific job categories: executives, managers, midlevel staff, clerks and manual workers.
Managers and midlevel staff received the biggest pay hikes in 2006 and Indian-owned companies offered better salary hikes than multinational firms in India.
The survey included companies in Australia, China, Hong Kong, India, Japan, South Korea, Macau, Malaysia, the Philippines, Singapore, Taiwan, and Thailand.
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