INTERNATIONAL REWARD
2006 worldwide pay survey
Globally, salary increases are expected to be higher next year than they were in 2005, according to a survey by Mercer Human Resource Consulting.
The average pay rise worldwide is expected to be 2.4 percentage points above inflation, compared to 1.9 percentage points this year. In the European Union, pay is likely to outstrip inflation by two percentage points.
Mercer's study also found a minority of countries will experience rises which are over double the global average. The greatest increases are expected in India, Egypt and Lithuania where employees are forecast to receive pay rises of 7.3%, 7.1% and 5.5% above inflation respectively.
Base pay increases for selected countries
To download a table showing projected 2006 annual base pay increases and inflation rates for selected countries visit www.mercerhr.com/pressrelease/details.jhtml?idContent=1116005
A final word
"We’ ve seen strong global economic growth in the past couple of years and all the signs indicate this is set to continue in 2006. With this growth and more stable inflation we anticipate next year’ s pay rises to be higher, in real terms, than this year’ s." -- Greg Cornish, global head of human capital advisory services at Mercer.
Want to know more?
Title: Global Compensation Planning Report 2006, Mercer Human Resource Consulting.
Survey methodology: The report examines employment, economic and pay trends in some 70 countries worldwide. Data on projected pay is taken from a survey of multinational companies and inflation data is primarily taken from the International Monetary Fund and the Organisation for Economic Co-operation and Development.
Data covers five levels of employees: operations staff, clerical staff, technical staff, managers and senior executives. The salary increases quoted above relate to the average of all employee categories for the 65 countries where full data is available and are forecast figures.
The survey examined 31 European countries, including 24 in the European Union.
Availability: Copies of the report cost $US720 (EUR600) and are available from client services, Geneva, tel: +41 22 869 3000 or at www.mercerhr.com/globalcompensation
Mercer Human Resource Consulting is the "global leader for trusted HR and related financial advice, products, and services". It employs more than 15,000 employees serving clients in 153 cities and 41 countries and territories worldwide. To find out more visit www.mercerhr.com
Posted 10 October 2005