Salary growth to crawl in 2020

Chennai: There is nothing much in store for employees even in 2020. The salary growth in the coming year is expected to be slower than this year. Moreover, the increments will be largely uneven—average performers witnessing a slower growth compared to high performers, finds Korn Ferry Global Salary Forecast.

The salary growth in India is expected to be 9.2 per cent in 2020. At the fag end of last year, Korn Ferry had predicted 10 per cent salary growth for 2019. However, the inflation-adjusted real wage rise for India will remain at 5 per cent this year as well.

“With current economic scenario and progressive reforms by the government, there is a sense of cautious optimism across sectors in India that continues to show high salary increments,” said Navnit Singh, Chairman and Regional Managing Director of Korn Ferry India.

Among the high growth countries, Egypt’s salaries are expected to increase by 13.5 per cent and a 6.6 per cent real-wage increase. In Asia, India‘s salary growth is the highest. Indonesia is forecast to have a salary growth of 8.1 per cent, whereas, Malaysia, China and Korea is expected to have a salary growth of 5 per cent, 6 per cent and 4.1 per cent respectively.

India will continue to see salaries growing unevenly bet-ween high performers and average performers. “In line with slower and lower increments across the board, companies will continue to differentiate their top performers, high potentials and critical talent sharply,” said Roopank Chaudh-ary, Associate Client Partner–Korn Ferry India.