14% fatter salaries till 2011

With corporates facing shortage of talent, India is likely to witness over 14 per cent increase in salaries annually for the next three years...

With corporates facing shortage of talent, India is likely to witness over 14 per cent increase in salaries annually for the next three years even as there has been a sharp rise in input costs, a latest study says.

India, Vietnam and Indonesia are the only three countries in the Asia-Pacific region likely to see double-digit increase in salaries till 2011 according to global human resource consulting firm Mercer.

“For India, although we forecast a slight downward trend, the country can still expect one of the highest pay increases in Asia-Pacific,” Mercer’s Asia-Pacific Compensation report stated.

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Salary increases in 2008 are expected to be higher than in 2007 across the region, with an easing expected in 2009 despite the slowing of most economies and weaker global scenario.

In terms of sectors, the financial services industry is likely to see the highest growth in salary increase despite of many MNCs facing the brunt of the subprime crises in the US, Gangapriya said. Real estate and infrastructure are also likely to witnesses aggressive increases in wages in the coming few years.