Expat workers looking for the biggest pay increase should head for Venezuela, according to human resources experts.
Salaries are likely to jump by 60% – but the sting in the tail is even higher inflation will see many workers worse off as the rising cost of living curbs their spending power.
Inflation is expected to soar to around 204% in 2016, so workers in the Latin American country will see the largest rise in wages and the biggest decline in spending power at the same time.
In a more normal world away from the effects of hyperinflation, average salaries are expected to increase by 5.1% worldwide, says expat benefits firm ECA International.
In real terms, after adjusting for average global inflation of 1.7%, the extra pay will be worth 3.4% more than 2015.
Global salary rises stay static
For most workers, salary increases will remain static – the average for 2015 was 5%.
The company’s salary trends survey also reckons the highest wage rises in real terms will be seen in Asia.
The research covered almost 350 companies across 70 countries.
China is the country with the likeliest standard pay increases next year. Bosses have confirmed they are planning average rises of 8%, a real terms increase of 6.2% after stripping out inflation.
Average salaries across Asia are expected to go up 6.8% – with the biggest hike in Pakistan and the lowest in Japan.
Greece is expected to see the lowest salary increase of 1.5% against a European average of 2.8%.
Price to pay for high wage rises
In real terms, even with Europe’s stagnant inflation compared with most of the rest of the world, workers will see a fall to 1.4% in real terms spending power from this year’s average 2%.
Around the rest of the world, in North America, companies are expecting 3% salary rises, which is the same as 2015.
In Australia, the rise is slightly higher – 3.5% and in the Middle East, around 5%.
“The warning for expats is if you are offered what looks like an above average salary increased, do not forget to take inflation and other costs into account because there is often a price to pay,” said a spokesman for ECA International.
“|as the table shows, many of the countries where companies are offering the largest pay rises rank much lower down the table for real terms wage increases.”
Nominal and ‘real’ salary increase forecast rankings 2016 – Global top 20
| Ranking 2016 | Country | Ranking for real terms salary rises |
|---|---|---|
| 1 | Venezuela | 70 |
| 2 | Argentina | 17 |
| 3 | Ghana | 69 |
| 4 | Pakistan | 3 |
| 5 | Vietnam | 1 |
| 5 | India | 6 |
| 5 | Bangladesh | 9 |
| 5 | Egypt | 44 |
| 5 | Ukraine | 67 |
| 10 | Nigeria | 64 |
| 11 | Indonesia | 8 |
| 12 | Sri Lanka | 4 |
| 12 | Russia | 65 |
| 14 | China | 2 |
| 14 | Kenya | 21 |
| 14 | Brazil | 31 |
| 14 | Turkey | 52 |
| 18 | Myanmar | 68 |
| 19 | Kazakhstan | 66 |
| 20 | South Africa | 55 |
Source: ECA International
