New Delhi: In what could bring cheers to the salaried class, a global consulting firm has said there could a 10 per cent increase in salaries in India in 2019 as compared to last year’s 9 per cent.
1. The firm ‘Korn Ferry’ has said that after adjusting the inflation, the real-wage hikes are likely to rise to 5 per cent from 4.7 per cent in 2018.
2. In fact, India will be the only country in Asia to witness a double digit growth in salary. The real wage hike too would be the highest among the nations.
3. However, the report did not elaborate sector wise increase in the salary component.
4. Among other countries in Asia, the report said China’s real-wage forecast for 2019 stood at only 3.2 per cent, Japan (0.1 per cent), Vietnam (4.8 per cent), Singapore (3 per cent), Indonesia (3.7 per cent).
5. The Korn Ferry 2019 Global Salary Forecast, which predicts real-wage salaries across the world, is based on Korn Ferry’s pay database which contains data for more than 20 million job holders in 25,000 organisations across more than 110 countries.
6. The projection could not have come at a better time for the earning class. Various reports also suggest that the BJP Government might bring in relief for them ahead of the elections. There are indications that the Union Budget might, the last of the Narendra Modi government before general elections, could announce tax benefits, especially keeping the middle class in mind.
7. Indications are that this five per cent slab could be lowered further, bringing relief to about three crore tax payers whose annual income falls between Rs 2.5 to Rs 5 lakh. During 2017-18, the rate for this band was slashed by half to 5 per cent.
8. In the last four years, Finance Ministry has given several tax relief to the middle class including increasing the income tax exemption limit by 50000 and reduction in tax rates, that have amounted to relaxation over 4 lakh rupees per person.
9. General elections are due in May and the government will pull out all stops to check inflation. This could come as a big relief to the salaried workers, HR professionals observed through their postings in social media.
10. An increase in salary could also give a push to economic activity due to increased spending, they said.