Expat workers around the world are likely to see higher salary increases in the coming year, according to a new study.
The real value of pay hitting bank accounts is likely to rise even though many companies are keeping a lid on the level of pay increases.
This is due to general lower global inflation giving expat workers more spending power.
The survey, by pay and benefits firm Mercer looked at companies across 100 countries to compile their salary predictions for 2014.
Expats are likely to see the highest pay rises in the Asia Pacific and the Americas, says the company, with bosses reporting management salary increases of 7.4%. Africa is lagging slightly behind with 7.3% increases.
Global outlook
Next comes the Middle East at 7.1%, while Europe lags behind – with a 5.8% salary rise in Central and Eastern Europe and only 2.6% in Western Europe.
The benchmark global average figure is 6.1%.
The firm also looked at the global economic outlook for 2014 and feels GDP growth will expand as inflation decreases.
Average global growth is expected to hit 3.8% compared with 3.3% in 2013, while average inflation is expected to drop from 4.6% to 4.4%.
Breaking the figures down by region, Western Europe is forecast to produce the highest growth.
The report shows:
- Western Europe – GDP up 1.6%, inflation down 0.1%
- Eastern Europe – GDP up 0.9%, inflation down 0.1%
- Middle East – GDP up 0.5%, inflation down 0.9%
- Asia Pacific – GDP up 0.3%, inflation unchanged
- Americas – GDP unchanged, inflation up 0.1%
- Africa – GDP down 0.1%, inflation down 0.7%
The global average is GDP growth of 0.5% and inflation to drop 0.2%.
No change for the jobless
Employment is not expected to change in 2014.
Mercer predicts a jobless rate of 8.9%, compared with 9% in 2013 and 8.9% in 2012.
“Employers are cautious about pay raises in 2014, but employees will benefit from improving economic growth and inflation,” said Niklaus Kobel, a researcher with Mercer.
“The question is whether employees will recognise inflation’s diminishing bite out of pay increases, or simply see pay increases on face value as smaller. This is an opportunity for employers to educate employees on pay and performance, as well as on pay increases relative to inflation.”
