November 07, 2013 / 08:45 IST
Employees in India can expect to see their pay increase by an average of 11 percent in 2014, though after factoring in inflation, the rise would be just 2 percent, according to the latest Salary Trends survey by ECA International. According to ECA International, a provider of knowledge, information and technology for the management and assignment of employees around the world, factoring in inflation, employees in Asia are likely to receive the biggest average increases in real terms.
"For the second year in a row, employees in India can expect to see their salaries increase by an average of 11 percent. While these are among the highest increases in the world they are only 2 percent above inflation forecasts for India next year," ECA International said.Also Read: This industry has an entry level salary of $335,000Employees in mainland China look set to experience some of the highest wage rises in the region, both before and after inflation is factored in, the report said. Chinese companies predict salary increases of 8 percent in 2014. Allowing for inflation, Chinese workers will see a 5 percent increase in real terms. The biggest salary increases in Asia next year will be given by companies in Pakistan. They are forecasting 13 percent salary hikes for their staff in 2014 and with a predicted inflation of 8 percent, employees are also set to receive the second-highest 'real' increases in Asia after China.Workers in Japan will continue to experience the region's lowest wage increases. If inflation rises to the 2.9 percent as predicted by IMF for 2014, they could experience a reduction in their buying power next year. The survey has forecast the highest pay rise by companies in Venezuela.Employers there are predicting 26 percent pay rise for staff next year. However, the figure trails behind inflation forecasts. The IMF is predicting 38 percent inflation in Venezuela next year, leaving employees there facing a spending power reduction of 12 percent in real terms. Companies in Switzerland and Greece are forecasting the lowest wage increases in the survey.Employees there can expect salary rises of around 2 percent. However, despite these low increases, little if any, of this is likely to be eroded by inflation, even as many of their peers will be worse off than them in real terms. In both the US and Canada, companies are predicting 3 percent wage rise, while those in Europe are forecasting 3.5 percent rises next year. ECA's 2013/2014 Salary Trends Survey reports on current and projected salary increases for local employees. This year, it covered 316 MNCs across 64 countries and regions. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
