“This year we are seeing a big turnaround when salary rises are compared with predicted inflation rates,” a Haygroup report said, adding that “in some emerging markets — the boom area of the last ten years — real wages are falling”.Among Asian economies, India is expected to see a salary rise of 10.5%, followed by Indonesia at 10%, China (8%), Philippines (7.5%), Malaysia (6.4%), Thailand (6%), Korea (5%), Singapore (4.4%) and Hong Kong (4%).
According to the report, real pay (after taking inflation into account) is now rising in many European markets with previously struggling economies such as Greece and Ireland showing signs of recovery with small real rises. The slowdown in Russia, Brazil and Ukraine was mirrored with real wage cuts, while high inflation erodes salaries in Latin American countries such as Venezuela and Argentina.While the Latin America regional average stood at 9.7%, Africa regional average at 6.9%, Asia regional average was 6.8%, Middle East (5.6%), Europe (3.1%) and North America (2.8%).
Haygroup further noted that salaries are still rising in some Asian markets as the war for talent continues and globally Asia is likely to see the highest growth in real salaries in 2015.The pay database was drawn from 16 million people in 24,000 organizations to show predicted salary increases forecast for 2015. We have compared them to inflation forecast data from Economist, October 2014.