Indians set to get highest salary hike in 2008

New Delhi: Indians working with MNCs are slated to get the highest salary hike of about 14 per cent on an average across the world in 2008, as firms readily adopt measures to prevent their employees from jumping the ship.

According to data compiled by global human resources consultancy firm ECA International, Indian employees are expected to get the biggest paycheck increase globally this year, primarily driven by inflationary situations associated with the robust economic growth in the country.

"Salary increase in India is expected to be the biggest this year as companies have to keep in mind the inflation for their employees to maintain a good economic stature," ECA International General Manager Lee Quane said.

Other key reasons for the significant salary increase would be the talent-retention measures being adopted by the MNCs as well as soaring corporate profits that entitle the employees for some handsome increments, Quane said.

According to ECA International's Salary Trends Survey 2007-08, Indian employees working with MNCs are forecast to receive an average hike of 14 per cent - the highest across the world, and up from 12.6 per cent in 2007.

India is followed by Argentina (12.7 per cent), Indonesia (11.3 per cent) and Russia (11 per cent).

However, salary hike in China, the world's fastest growing major economy, is likely to remain static at eight per cent this year.

Across the regions, employees in Asia would receive the highest salary increases worldwide.

The top 10 countries globally in terms of expected salary rise include five Asian nations - India, Indonesia, Vietnam, China and the Philippines.

"Salary increases in the region (Asia) are predicted to be over 25 per cent higher than they were in 2005, and for the first time, the region's salary increase is expected to overtake that of Eastern Europe where wage rises are showing signs of similar increments as in 2007," ECA survey found.

In terms of rise from the previous year's hike, India and Vietnam would see the biggest rise in the annual hikes.

While India's annual hike would rise from 12.6 per cent to 14 per cent, that of Vietnam would increase from 8.5 per cent to 10 per cent.

In contrast, companies in the developed countries such as Switzerland, Japan, France, Austria and Germany would dole out lowest salary hikes this year.

The biggest fall in salary hike since last year is likely in Slovenia, where the companies expect a wage increase of 5.5 per cent, down 1.3 percentage points from 2007.

In Latin America, companies in Argentina are forecasting salaries to rise from 11.3 per cent in 2007 to 12.7 per cent in 2008. This is almost double the regional average of 6.4 per cent, the survey added.

The ECA Survey contains information collected from about 250 multinational companies in 47 countries about actual salary increases for 2007 and predicted salary increases for 2008.