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SINGAPORE - Asian workers are expected to enjoy the highest pay rises in the world this year, thanks to robust economic growth, talent shortage and lower inflation, a survey showed yesterday.
Real wage increases, which represent workers' annual salary rises after taking inflation into account, are expected to climb an average 3.6 per cent in Asia this year, a 50 per cent jump from 2.4 per cent last year, according to a survey by human resources firm ECA International.
Robust economic growth has turned Asia into one of the fastest-growing millionaires clubs in the world as private bankers flock to the region and as banks such as Merrill Lynch/Capgemini bet that the wealth of Asian millionaires may hit US$10.6 trillion ($15.5 trillion) in 2010.
Salaries for Asian workers may get a bigger boost because Asian economies are growing faster than the supply of talent and because falling inflation rates are lifting purchasing power, said Lee Quane, of Hong Kong-based ECA.
According to the survey, which compares 45 countries, workers in India are set to enjoy the sharpest jump in real wages this year at 7 per cent.
In comparison, salaries for workers in Slovakia may grow by 3.5 per cent - the fastest expected pace of growth outside Asia - and American workers may see their wages inch up only 1.1 per cent.
Quane said workers in India's business process outsourcing and technology sectors were likely to see the sharpest wage increases.
Paying up
Highest forecasted real wage increases in 2007:
1. India
2. Indonesia
3. China
4. Philippines
5. Thailand
6. Slovakia
7. South Korea
8. Malaysia
9. Egypt
10. Russia
- REUTERS
