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Salary rises across the world are expected to weaken according to the latest pay forecast data from global management consultancy, Hay Group. Salaries are set to increase by +5.2% on average but rises for 2014 are expected to average -0.3 percentage points less than last year’s forecast of +5.5%.
Venezuelan workers look set to receive the biggest pay increase of +27%. Yet, with local inflation predicted to reach 36.4% in 2014, employees will actually feel a significant cut in real income.
Salary rises in Europe are forecast at +3.1% on average, boosted by high rises in emerging nations. This compares to +3.3% in 2013.
North America is set to see rises of +2.7% in 2014 compared to +2.9% last year.
In the Middle East pay rises have stabilised but forecasts are down on 2013. The average rise forecast is +5%, down from +5.5% last year
Hay Group’s research is based on the salary expectations of more than 22,000 organisations in 71 countries worldwide, representing 15 million employees.
Ben Frost, consultant at Hay Group, comments: “This year’s global forecast highlights a significant slowdown of pay rises into the new year, as GDP growth in many parts of the world remains subdued. Even where optimistic rises are expected in fast growing markets, high inflation means the economic recovery won’t be felt in the pay packets of employees in many countries.”