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India to witness highest salary hike in 2023; Sri Lanka among lowest in the World
At a time rising inflation is set to put a major dent in salary increases for the second year running in 2023, India is set to see the highest rise in real salaries in the world. However, ECA’s Salary Trends Survey, based on information collected from over 360 multinational companies in 68 countries and cities, sees just 37 per cent of countries globally expecting to report real-term wage hikes.
The worst-hit region is likely to be Europe, where real salaries — nominal wage growth minus the rate of inflation — are seen being driven down an average 1.5 per cent, according to the workforce consultancy, Bloomberg said quoting the survey findings.
According to the report, the US has seen a real-terms drop of 4.5 per cent this year is expected to be reversed by falling inflation next year, translating into a 1 per cent real-terms salary hike.
Also, amid the ongoing economic turmoil, UK employees suffered their biggest hit this year, since the survey kicked off in 2000. Despite a 3.5 per cent average nominal pay increase, salaries in real terms fell 5.6 per cent, due to 9.1 per cent average inflation. They are set to tumble another 4 per cent in 2023.
Meanwhile, what comes as a piece of news to cheer, Asian nations make up eight of the top 10 countries forecast to see real salaries rise, led by India, up 4.6 per cent, Vietnam rising 4.0 per cent and China up 3.8 per cent.
ECA International’s Regional Director for Asia, Lee Quane, said: “Our survey indicates another tough year for workers globally in 2023. Only around a third of the countries surveyed are forecast to see real-terms salary increase, though this is better than the 22 per cent that experienced increases this year.” Average salaries fell 3.8 per cent in 2022, according to ECA.
These are the top 10 countries and their predicted real-terms salary increases in 2023:
- India (4.6 per cent)
- Vietnam (4.0 per cent)
- China (3.8 per cent)
- Brazil (3.4 per cent)
- Saudi Arabia (2.3 per cent)
- Malaysia (2.2 per cent)
- Cambodia (2.2 per cent)
- Thailand (2.2 per cent)
- Oman (2.0 per cent)
- Russia (1.9 per cent)
- And the bottom five, with their expected decreases:
- Pakistan (-9.9 per cent)
- Ghana (-11.9 per cent)
- Turkey (-14.4 per cent)
- Sri Lanka (-20.5 per cent)
- Argentina (-26.1 per cent)
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