Salary rises across the world will decline in 2014, according to forecast data from global management consultancy Hay Group.
Pay will increase by 5.2% on average globally, driven largely by robust growth in emerging markets. This figure represents a 0.3% decline compared to last year.
Staff in Europe will see an average pay rise of 3.1% in 2014, 0.2% down on last year and one of the lowest figures across the world.
Employees in the UK will experience a pay increase of 2.5%, below the global and European average and a drop of 0.5% since 2013. This will be mitigated by an expected 2.7% inflation rate.
Ireland will fare better, with an expected salary increase of 0.8% in 2014 following three consequent years of 0% rises.
Other expected pay increases in 2014:
- North America: 2.7%, down from 2.9% last year
- Middle East: 5%, down from 4.5% last year
- Venezuela: 27%, but inflation will hit 36.4%
- Asia: 7%, down from 7.2% last year
The highest 2014 pay increases are expected to be:
- Vietnam: 11.5%
- India: 10.9%
- Indonesia: 10%
- China: 8.6%
David Smith, consultant at Hay Group, commented: “Although it’s pleasing to see the recent economic growth figures, it’s clear that businesses are remaining cautious when it comes to setting pay. Although the gap is closing within some industry sectors, salaries have now not kept pace with the cost of living for several years.”
Hay Group’s research is based on the salary expectations of more than 22,000 organisations in more than 100 countries worldwide, representing 15 million employees.
