Companies in Argentina are forecasting 28 per cent pay rises for staff in 2015 — the highest globally, according to the a salary trends survey by ECA International, provider of knowledge, information and technology for the management and assignment of employees.
The tightening of Argentina’s labour market over several years, combined with high general price inflation, has supported ongoing, rampant wage growth there in recent years.
"Although wage increases in Argentina and the highest in the world, once inflation of over 27 per cent has been factored in, these large increases will have little impact on spending power,” said Michael Witkowski, vice-president of ECA International New York.
Argentina will replace Venezuela at the top of the list of countries where wage increases are highest. Soaring inflation means that despite companies there forecasting the second biggest pay rises in 2015, employees will see large salary decreases in real terms, said ECA.
In Brazil companies are forecasting 7.5 per cent increases again — the third highest in the Americas. The sustained tightening of the labour market through the last decade, alongside high inflation, has put strong upward pressure on salaries — a trend that continues, albeit more moderately. With inflation anticipated to fall slightly in 2015, real wage rises next year will be 1.6 per cent — slightly higher than this year.
The lowest wage increases in the Americas are being forecast in the United States and Canada where companies are predicting three per cent rises — the same raise employees in both locations have been getting since 2011. After inflation, real wage increases will be similar in 2015 as they have been this year, found the survey of 340 multinational companies across 66 countries and regions.
According to company predictions from around the globe, wages will rise 5.8 per cent on average in 2015, slightly up on this year’s 5.6 per cent average.
The lowest increases are being forecast by companies in the European locations of Greece, Ireland, Portugal, Spain and Switzerland. Pay increases of two per cent in 2015 are expected there. However, on average, wages will rise 3.5 per cent in Europe, said ECA.
Salaries in Asia are expected to increase by 7.2 per cent in 2015 with the largest uplifts being given in Pakistan and the lowest in Japan. Factoring in inflation, real wage raises in Asia will average 2.7 percent — higher than the other regions surveyed. In mainland China, companies are planning to award eight per cent salary increases again next year. Even after inflation, staff in China will be among the best off within the region and globally: they can expect to see increases of 5.5 per cent in real terms.
Employees in the Middle East are set to see wages rise 4.7 per cent on average. Of the African locations surveyed the highest salary rises will be granted in Egypt but are still lower than inflation forecasts leaving employees there to see their salaries decrease in real terms. In Australia, staff can anticipate 3.5 per cent salary increases again next year, said ECA.
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