By 2024, workers in the Asia-Pacific region will experience the largest real salary increases, according to information presented by ECA International. Of the 12 locations in Asia-Pacific, nine had the highest real wage increases in the world.
It is estimated that the average real salary increase, which includes nominal salary growth minus the rate of inflation, will reach 2.2% in Asia-Pacific. This is more than double the global average of 1%, according to the Salary Trends Report.
According to the data, the Americas region is expected to see real salary growth of 2%, while Africa and the Middle East will see growth of 0.8%.
The data also shows that Europe will lag behind most other regions, with employees there expected to receive only a 0.9% real salary increase next year. The UK is expected to see an increase of only 1.3%.
Commenting on the situation, Oliver Browne, head of compensation and policy surveys at ECA International, said that with high levels of inflation, many companies in the UK are struggling to reward their employees with salaries. Browne added that despite the fall in inflation, nominal increases are expected to remain higher than usual next year, suggesting that some companies may award larger increases over a longer period.
Meanwhile, in Asia-Pacific, India, Indonesia, and China will be the three countries with the highest salary increases in the world, reaching 5.1%, 4.3%, and 4.1% respectively. According to the research results, most of the surveyed locations in the Asia Pacific have the potential to maintain or even exceed the real salary growth rate that occurred in 2023, with the exception of Sri Lanka and New Zealand.
According to Mark Harrison, who serves as General Manager for Asia at ECA International, he shared that thanks to lower inflation rates compared to the rest of the world, most regions in Greater China, with the exception of Hong Kong, are expected to be among the top ten globally for the highest projected real salary increases by 2024.
The next country to experience significant salary increases is Hong Kong, which has reached 4% this year and is expected to remain stable in 2024. The country is able to achieve this feat due to its lower inflation rate compared to the rest of the world.
Under these conditions, employees in Hong Kong are projected to experience a real salary increase of 1.7% next year, a 0.1% decrease from the growth rate in 2023.