Pay increases for white-collar jobs in China and India will rise substantially faster than increases in United States and Europe according to new research from Philadelphia-based HR consulting firm Hay Group. The report states that “Much like their colleagues in Europe, US employees will be seeing relatively modest increases in base salaries when compared to the emerging economies.”

With a predicted 7.9% increase for administrative workers, 7.8% for professionals and 8.9% for senior management, China leads all tables. India saw pay increases of 7.2% across all job categories which looks set to continue through 2007. According to the report, India boasts the second highest pay increase predictions for 2007, with increases of 6.2% forecast across the three job levels. Senior managers can anticipate a real increase of 6.9%, professionals and administrators 5.9% each.

From the report:

“The wealth created by rapid, focused economic development is resulting in a pay boom for Chinese and Indian workers, who will enjoy some of the largest real pay increases worldwide in 2007,” said Hern Yin Goh, Director of Hay Group Reward Information Services in Shanghai.