India tops Asian pay hike chart

Salaries to go up 14% in India, 8.1% in China in 2006: Hewitt.

An international study has projected India as the runaway leader across the Asia-Pacific region in rewarding its work force next year with an average increase of 14 per cent in salaries.

China is seen as a distant second, with 8.1 per cent, and shares the position with the Philippines.

Japan is seen as the most parsimonious of the lot, doling out just a 2.8 per cent rise in employee salaries "� the lowest in the region.

These are the figures projected for the next year in the preliminary results of the annual Asia-Pacific Salary Increase Survey for 2006 conducted by human resources firm Hewitt Associates.

India appears set to maintain its lead. The average salary increase in the country reported in 2004 -- 13.7 per cent -- was the highest in the region. The increase was attributed to a rise in inflation during the year. China had then reported a 7.6 per cent salary increase, behind second-ranked Philippines (8.1 per cent).

"As organisations attempt to become more global and capture larger customer bases around the world, India and China continue to be strong favourites. It is expected that these countries will continue to drive and significantly influence economic growth in the region. Given the global attention, salary increases in these markets are expected to be among the highest in the region," Nishchae Suri, rewards consulting leader for Hewitt Associates in Asia, said.

Complete results of the survey, which the firm claims are the most comprehensive and detailed study of salary trends and compensation practices of its kind, will be available in mid-October.

The survey measures actual and projected salary increases and compensation practices for five specific job categories, namely senior/top management, manager, professional/ supervisor/technical, clerical/support, and manual workers.