Indian MNC staff to get highest salary hikes in ’08

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New Delhi, Jan 17: Indians working with MNCs are slated to get the highest salary hike of about 14% on an average, across the world in 2008. According to data compiled by a global human resources consultancy firm, Indian employees are expected to get the biggest pay-package 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,” said Lee Quane, general manager, ECA International.

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 added.

According to ECA International’s Salary Trends Survey 2007-08, Indian employees working with MNCs are forecast to receive an average hike of 14%—the highest across the world, and up from 12.6% in 2007. India is followed by Argentina (12.7%), Indonesia (11.3%) and Russia (11%). However, salary hike in China—the world’s fastest growing major economy, is likely to remain static at 8% this year.

Across the regions, employees in Asia would receive the highest salary increases worldwide. The top ten 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% 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,” the ECA survey found.