What Your Salary Might Look Like In 2020

Indian employees may see a 9.2 per cent growth in their salaries in 2020, according to the recently released report
What Your Salary Might Look Like In 2020
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Paying your employees in just way is extremely important for any organization. Employees are the most valuable asset and providing them with their worth in return for their hard work is important to maintain employee satisfaction and retain them.

Indian employees may see a 9.2 per cent growth in their salaries according to a recently released report, Korn Ferry Global Salary Forecast 2020. The report, however, said that inflation may cause a setback to this projection and thus the real salary increase in India is estimated to be 5 per cent.

India May Lead Salary Increase In Asia

According to the report, India might see the highest salary growth in Asia. It also said that the highest real wage growth is expected in Asia, with salaries forecast to grow by 5.3 per cent in 2020. Considering the inflation rate of 2.2 per cent, real-wage salaries are projected to be 3.1 per cent.

While India leads the salary increase with 9.2 per cent in Asia, the second position has been claimed by Indonesia with  8.1 per cent followed by Vietnam with 7.7 per cent and China with 6 per cent. However, in terms of real salary increases considering the inflation rate, India claimed the second position with 5 per cent after Indonesia which claimed the top position with 5.1 per cent.

Credit: Korn Ferry Global Salary Forecast 2020

According to media reports quoting Rajiv Krishnan, managing director at Korn Ferry Advisory India, the country projected a strong growth even at a time when real wages have gone down. Owing to the current economic situation and government reforms, there is a sense of “cautious optimism across sectors in India” which projected a high salary increase.

Last year,  Willis Towers Watson’s 2018 Salary Budget Planning Report had predicted a 10 per cent rise in the salaries of Indian employees for 2019.

Global Figures

The report also revealed that salaries across the globe are predicted to grow at a rate of approximately 4.9 per cent in 2020. Considering  a global inflation rate prediction of approximately 2.8 per cent, the real-wage salary increase is predicted to grow at a rate of 2.1 per cent.

“There is good news for workers in these numbers in that real wage growth is projected to be higher than in 2019. But the lower rate of inflation embedded in the numbers may also foreshadow expectations of a stalling economy in several key countries, which could in turn lead to higher rates of unemployment,” said Don Lowman, Korn Ferry Global Leader, Rewards and Benefits. 

Credit: Korn Ferry Global Salary Forecast 2020

Some global highlights are:  

  • In North America, the report predicts the average salary growth at a rate of 2.8 per cent in 2020, the same as last year and the real-wage growth is expected to grow at 1.1 per cent;

  • Eastern Europe might see an average salary increase of 6.2 per cent in 2020 and the real wages are predicted to increase by 2.6per cent compared to  2.0 per cent last year;

  • Employees from Western Europe may see an average increase of 2.5 per cent, and inflation-adjusted real wage increases of 1.2 per cent;

  • In the Middle East, wages are predicted to increase by 3.6 per cent in 2020, the same as last year but the real-wage increase is predicted at 1.6 per cent, up from 0.4 per cent last year;

  • Salaries in Africa are expected to increase by 7.9 per cent in 2020, and the real-wage increase is predicted to be 2.3 per cent;

  • Salaries in Pacific are projected to grow by 2.5 per cent in 2020.

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