Global Salary Increases Predicted to Outpace Inflation

Salaries worldwide are predicted to rise by an average of 5.9% next year -- 1.9% above average inflation, according to a new study by Mercer Human Resource Consulting.  The study does show that pay and inflation trends, and the relationship between them, vary widely around the world.  For example, employees in Latvia are expected to receive pay increases of 6.8% above inflation, while pay increases for Puerto Rico are forecast to be 4.5% below the inflation rate.

Survey data highlights showing projected average salary increases and inflation rates for 2007 are noted below:

Europe

• Greece: salary increases at 5.0%, inflation at 3.0%
• Ireland: salary increases at 4.5%, inflation at 2.5%
• United Kingdom: salary increases at 3.6%, inflation at 1.9%
• Germany: salary increases at 2.3%, inflation at 2.5%
• Latvia: salary increases at 11.1%, inflation at 4.3%
• Lithuania: salary increases at 7.3%, inflation at 2.8%
• Hungary: salary increases at 4.8%, inflation at 5.5%

North America

• United States: salary increases at 3.7%, inflation at 2.4%
• Canada: salary increases at 3.7%, inflation at 2.0%

Central/South America

• Argentina: salary increases at 11.8%, inflation at 15.0%
• Venezuela: salary increases at 17.4%, inflation at 17.3%
• Dominican Republic: salary increases at 9.8%, inflation at 5.0%
• Uruguay: salary increases at 9.4%, inflation at 4.9%
• Peru: salary increases at 3.5%, inflation at 2.0%

Asia/Pacific

• Indonesia: salary increases at 11.4%, inflation at 6.6%
• China: salary increases at 7.2%, inflation at 2.2%
• Singapore: salary increases at 4.0%, inflation at 1.9%
• Hong Kong: salary increases at 3.6%, inflation at 2.1%
• Australia: salary increases at 4.0%, inflation at 3.5%

Learn more about the Mercer study here.

AccountantCareers.co.uk provides accounting jobs in the U.K. through its Web site.

Comments

[RayC22]

Hey Ann,

Hat's off to you (aka data-mining guru!)

I saw the global salary increase information you shared from TP. With reference to the recent global economic hype, was wondering if there's any updated inflation numbers outthere.

[Ann Bares]

Ray:

I don't know - the availability of this kind of data always seems to lag our need for and interest in it. If I run into anything, I'll post it, but I'm guessing we'll have to wait for anything that is truly reflective of the current state.