RP has third highest salary growth in Asia-Pacific

The Philippines ranked third in the list of countries that showed hikes in the salaries of workers, according to global human resources consultants Hewitt Associates on Thursday.

Wages in the country showed a hike of 8.2 percent, closely following China, where salaries reflected an 8.3 percent hike last year.

However, the Philippines is expected to outpace China in terms of salary increase this year, with projected increase expected to average at 8.9 percent. China’ s wage hike is projected at 8.2 percent this year.

Indian salaries, on the other hand, are rising faster than any in the Asia-Pacific region, clocking double-digit growth for the fourth year in a row.

"Due in large to the effects of globalization, the war for talent is becoming increasingly fierce in India," said Sharad Vishvanath, leader of the talent and organization consultancy practice for Hewitt, in a statement.

"As a result, compensation now plays an increasingly fundamental role in attracting talent and ensuring ongoing employee engagement."

Wages rose by an average of 14.4 percent last year, said the company as it released its annual study on Indian salary increases in New Delhi Thursday.

Raises were the lowest in Japan, at 2.6 percent.

The company forecast that wages would rise even more in India in 2007, by an estimated 14.5 percent.

In India, pay raises last year were larger at domestic companies, Hewitt said.

"Locally-owned organizations saw an overall salary increase of 14.9 percent, while foreign-owned organizations saw an overall increase of 14.3 percent," the statement said.

Pay raises were highest in insurance and banking, which showed hikes of 17 percent, while healthcare was among the lowest, with salaries rising 12 percent, and nonprofits were at the bottom with wages going up by 11 percent.

The employees of close to 600 companies in 21 industries were interviewed for the survey, the consulting company said.

The survey included companies in Australia, China, Hong Kong, India, Japan, South Korea, Macau, Malaysia, the Philippines, Singapore, Taiwan, and Thailand. – AFP, AP