INTERNATIONAL REWARD
Salary growth to outpace inflation in most countries
Despite continuing economic uncertainty, employees in most countries can expect their pay to increase next year by 1% to 3.5% above inflation, according to an international study by Mercer Human Resource Consulting.
In the majority of countries, including the UK and US, pay increases are predicted to hover a few percentage points above the annual inflation rate. But the research reveals distinct differences in pay and inflation trends across various regions of the world.
A handful of countries can be found at the extremes. For example, in Venezuela pay increases are expected to be around 7% lower than inflation, while in Bulgaria, pay is predicted to rise almost 11% above inflation.
Projected annual base pay increases and inflation rates, 2003
| Average projected pay increases | Projected inflation rates | |
| Australia | 4.0% | 2.5% |
| Brazil | 5.4% | 4.0% |
| Canada | 3.3% | 2.5% |
| China | 8.6% | 1.5% |
| France | 3.1% | 1.7% |
| Germany | 3.2% | 1.6% |
| Hong Kong | 3.4% | 0.5% |
| India | 9.0% | 4.5% |
| Ireland | 6.4% | 3.8% |
| Italy | 4.0% | 1.7% |
| Japan | 2.7% | 0.2% |
| Mexico | 4.6% | 3.8% |
| Russia | 8.4% | 11.0% |
| Singapore | 4.2% | 1.0% |
| Spain | 4.3% | 2.8% |
| United Kingdom | 3.8% | 2.3% |
| United States | 3.9% | 2.3% |
Source: Mercer Human Resource Consulting.
A final word
"Despite some optimism about economic recovery, companies remain cautious in setting their salary budgets and are reluctant to commit to high increases in the current uncertain times." - Safarina Kardany, senior researcher, Mercer Human Resource Consulting.
Want to know more?
Title: Global Compensation Planning Report 2003, Mercer Human Resource Consulting.
Methodology: The report examines economic, employment and pay trends in over 60 countries worldwide. Data on projected pay comes from a survey of multinational companies, while inflation data is mostly collected from the International Monetary Fund (IMF) and the Organisation for Economic Co-operation and Development (OECD).
Pay statistics cover five levels of employees: operations, clerical, technical, managers and senior executives. The salary increase figures quoted above relate to the average of all employee categories.
Availability: Copies of Mercer's survey are available from client services, Mercer Global Information Services, Geneva, tel: +41 22 869 3000.
To read the press release online visit www.mercerhr.com/pressrelease/details.jhtml?idContent=1078075
Mercer Human Resource Consulting "helps organisations create measurable business results through their people". It has more than 13,000 employees serving clients from 143 cities in 40 countries worldwide. For more details jump to www.mercerhr.com.
Posted 2 January 2003