China, India and Eastern Europe race ahead in 2007 pay rise stakes


China, India and Eastern Europe race ahead in 2007 pay rise stakes

New research from management consultancy Hay Group reveals that China, India and Eastern Europe will top the global pay rise league table in 2007, while real salary growth for workers in the West is expected to fall below average.

The study shows that rapid economic acceleration in India and China is having a dramatic impact on pay packets. China tops the tables for each of the three job categories examined, with a predicted 7.9% increase for administrative workers, 7.8% for professionals and an impressive 8.9% for senior management.

“The wealth created by rapid, focused economic development is resulting in a pay boom for Chinese workers, who will enjoy some of the largest real pay rises on offer worldwide in 2007,” said Hern Yin Goh, manager of Hay Group Reward Information Services in Shanghai.

%ADVERT%Above average pay rises in India last year – 7.2% across the board – look set to continue into 2007. The country boasts the second highest pay increase predictions for 2007, with “hefty” salary increases of 6.2% forecast across the three job levels, finds Hay Group. Senior managers can anticipate a real rise of 6.9%, professionals and administrators 5.9% each.

More modest increases in UK and Western Europe

By contrast, salary increases in the West will be much more moderate in 2007. Workers in the major continental economies - Germany, Italy, Spain and France - face predicted increases below 1.5% across all job three categories, the only exception being Italian senior management, who will enjoy an increase of 2.3%. Administrative staff in Italy will receive a meagre 0.5% real pay increase.

British workers can expect only a 1.5% real increase across the board, with real wage rises highest for professionals (1.7%). Senior managers will receive increases of 1.5%, administrative staff just 1.2%.

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Title: Global Pay Day Report, Hay Group.

Methodology: The Global Pay Day Report is compiled using PayNet, one of the world’s most comprehensive pay databases. It sets out salary increases in 2007 for 67 countries worldwide.

The report reveals “real” 2007 salary rises for administrative, professional and senior management roles, based on employers expected increase in salaries once national inflation rates have been discounted.

Salary increase predictions are made by Hay Group’s 13,000 database participating organisations, based on their expectation of salary increase budgets for the forthcoming year. 

Availability: Contact the Hay Group’s London office on tel: 0207 856 7000. To download a copy of the full press release visit

Hay Group PayNet is an internet-based service that helps clients make decisions regarding compensation and benefits for their employees - both locally and globally. The databases cover more than seven million individual records from over 13,000 of the world’s leading organisations in more than 67 countries. For further details visit

Hay Group is a global consulting firm that “develops talent, organises people to be more effective, and motivates them to perform at their best”. With 88 offices in 47 countries, it works with over 7,000 clients across the world. For more information visit