Global inflation has heavily impacted the wage hike of the workforce across the world, according to a survey conducted by workforce consultancy ECA International. However, only 37 percent of the countries – some in Asia – are to experience real salary hikes in 2023. If you were hoping Singapore was on the list, sorry – although now the fourth most overworked city in the world, the city didn’t make the cut, which means we’ve got our work cut out for us next year.
On the bright side, the percentage of countries set to get a wage hike is an improvement from 22 percent in 2022, a Bloomberg report stated, mentioning the survey.
The actual salary hike calculated after deducting the inflation rate from the nominal hike is close to 1.5 percent in Europe, as per ECA International. Additionally, the report claims that the employees are facing a negative impact of this magnitude on their salaries because of the 9.1 percent average inflation.
Asia fares well compared to UK and US for salary hikes
A 1-percent real-salary hike is expected in the US in 2023 after a drop of 4.5 percent in 2022.
Meanwhile, real salary hikes could be seen in Asian countries, as eight of them make up the top 10 list of nations expected to witness a wage hike in real terms in 2023.
India is predicted to get the highest pay hike with 4.6 percent, closely followed by Vietnam with 4 percent and China, which is estimated to see a 3.8-percent real-term rise.
What about other Asian nations?
Other Asian regions included in the top 10 list for salary hikes are Saudi Arabia, Oman, Malaysia, Cambodia and Thailand.
Oliver Browne, remuneration manager at ECA International, said, “The situation in Asia has been relatively stable as the region has been shielded from the worst of the inflation impacting much of the rest of the world. On average, salaries increased by 0.3% in real terms across the region. Employees in China saw real-term salaries increase 3.7 per cent and Hong Kong 1.6 per cent.”
Browne has predicted that stability will continue in Asian markets in 2023.
(Main and featured image credit: Alexander Mils/Unsplash)
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