Workers around the world are expected see “real” (inflation-adjusted) wage increases of 2.5 percent in 2016—the highest in three years—as pay increases combine with historically low inflation to leave employees better off, reveals a forecast by advisory firm Korn Ferry and its Hay Group division.
Average real wage increases are based on data from 75 countries in Hay Group’s database, as forecast by global HR departments for 2016. The findings are compared to predictions made a year earlier regarding 2015, and to inflation predictions for 2016 from the Economist Intelligence Unit.
“This year’s global salary forecast shows that, for the majority of countries, real wage increases in 2016 are set to be the highest in three years,” said Philip Spriet, global managing director for productized services at Hay Group. “Differing macro-economic conditions means there are stark variations globally. But overall, decent pay increases, coupled with extremely low (and in some cases, zero) inflation, mean that the outlook is positive for workers.”
