HR Consulting firm Hewitt Associates has indicated that the wages in India may see a rise of 14.4% in year 2008. As Indian companies are hunting for hard working and talented employees, they have to pay more to get better work force. However, Sri Lanka replaced India from No. 1 position with 15.3 percent salary rise in Asia-Pacific Salary increase survey.

Mr. Nishchae Suri, Head (Talent and Organisation Consulting Analytics Practice Asia), Hewitt said, “It wouldn't be a surprise if the actual percentage increase is closer to 15 percent. The pull is on the side of the people today. With more opportunities and avenues, organisations are increasingly at the mercy of employees making a choice.”

India has maintained double digit growth for fifth consecutive year. The economy is strong and Indian companies are performing well. The increase in the profits of the companies has enabled the employers to pay more. Out of 262 companies surveyed in India, none had witnessed a salary decrease.

India is still facing shortage of skilled workers in many sectors. Technology companies are facing an average attrition rate of 20 percent and are ready to pay more to retain their employees. The economy has sustained a growth of nearly 9 percent. Experts expect the Indian economy to grow at same pace for next 2 – 3 years.