Workers in Asia-Pacific are predicted to receive the biggest real pay increase in 2024, according to ECA International.
The average real salary increase — which is nominal wage growth minus the rate of inflation — is expected to increase by 2.2% in Asia-Pacific, more than twice the global average of 1%, according to the Salary Trends Report.
The North and South America region is expected to receive a 2% real salary growth, while Africa and the Middle East could see growth of 0.8%, the data consultancy said.
Europe is set to lag behind most regions and employees there may only receive a 0.9% increment in real salary next year, the study showed.
The UK is expected to see a 1.3% increase.
“With inflation so high, many businesses in the UK have been unable to offer their employees pay awards to match,” Oliver Browne, remuneration and policy surveys manager at ECA International, said.
“Nominal increases are expected to remain higher than usual next year despite falling inflation, suggesting some companies may instead be spreading larger increases over a longer period,” Browne said in a statement.
India and China snags top spots
This year, nine out of 12 places in Asia-Pacific received the highest real salary increases in the world, ECA International reported.
Growth in salaries will continue next year, with India (5.1%), Indonesia (4.3%) and China (4.1%) being the top three performers.
“Most surveyed locations in the APAC region are likely to maintain or exceed their 2023 real salary growth rates in 2024, with the exceptions being Sri Lanka and New Zealand,” the study said.
Source: ECA International
Nominal wages for employees in Hong Kong stood at 4% this year and are expected to remain the same in 2024, due to lower inflation rates compared to the rest of the world, ECA highlighted.
Employees in Hong Kong could get a 1.7% real salary increase next year, a 0.1% drop from 2023.
Workers in China are expected to receive a real salary increase of 4.1% next year — the third highest hike in the region.
“Due to the advantage of a lower inflation rate compared to the rest of the world, most locations in Greater China except Hong Kong rank among the top 10 globally for the highest real forecast salary increases in 2024,” Mark Harrison, general manager for Asia at ECA International, said.
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