2007 Worldwide Pay Survey - Salaries to Rise 5.9%
While the average pay in nearly two-thirds (63%) of the 60 countries surveyed, including the UK and US, is forecast to rise by between 1 and 3.5 percentage points above inflation, the report reveals interesting differences in pay and inflation trends around the world. Salaries in Paraguay and China are predicted to outpace inflation by 6.4% and 5% respectively. Puerto Rico, Argentina and Ukraine rank lowest, with projected pay increases forecast at 4.5%, 3.2% and 2.3% below inflation respectively.
In the UK, pay is projected to increase by 3.6%, with inflation at 1.9%. Germany is expected to have the lowest pay growth in the region at 2.3%, with inflation at 2.5%, leaving workers worse off in real terms.
Workers in Indonesia and China, where multinational companies continue to set up operations, are predicted to receive pay rises of around 11.4% and 7.2%, respectively. Inflation in these countries is likely to be 6.6% and 2.2%, so in real terms employees in both countries will experience similar increases. In Singapore and Hong Kong, pay is forecast to rise by 4% and 3.6%, respectively, and inflation is likely to be around 1.9% and 2.1%.