New Delhi: The latest salary increase survey by global HR consulting firm Hewitt Associates has forecast an average wage hike of 14.5 per cent for India in 2007. The HR consulting firm noted that the double-digit growth in salary hike for the fourth year running was the highest in Asia Pacific region.

Hewitt attributes globalisation and increased competition for the talent pool responsible for forcing companies to increase incentives and compensation to attract high quality professionals and retain them.

According to Sharad Vishvanath of Hewitt Associates salaries in India are continuing to rise and were likely to reach the same levels as in the more developed economies in Asia in the future.

Vishvanath pointed out that locally owned organisations were leading the multinational companies in paying higher salary hikes and said that in 2006, domestic companies saw an overall salary increase of 14.9 per cent compared to the 14.3 per cent hike given by foreign-owned organisations.

Homegrown organisations have aligned compensation practices to that of global standards to strengthen their reward management practices and focus on pay for performance to attract and retain talent and enhance overall productivity, he added.