Workers in Asia-Pacific are predicted to receive the biggest real pay increase in 2024, according to ECA International. The new estimates revealed that the average real-terms pay increase there will hit 2.2% for 2024. According to the report, this is higher than the average real terms pay increase of 1.8% this 2023.
According to the latest annual Salary Trends Report, UK salaries are expected to increase by 1.3% in 2024 in real terms as UK businesses expect to repeat a higher than usual nominal pay increase of 5%. This equates to an average salary boost of £447 – the highest real-terms increase since the 1.7% received in 2020 – should inflation drop to 3.7% as anticipated.
Furthermore, the UK ranks 28th globally and 7th in Europe for real-terms salary increases forecasted next year, outpacing the expected average global rise of 1.0%.
ECA has conducted its Salary Trends Report for 23 years and analyses data from over 360 multinational companies in 68 countries. Real salary increases are calculated by subtracting the relevant inflation percentage from the nominal salary percentage increase forecasted by businesses in each country.
“Asian countries have been comparatively less affected by the spikes in inflation witnessed elsewhere, with particularly low inflation in China having a knock-on effect in many other countries in the region. As a result, despite not seeing the highest nominal salary increases in the world, the real-terms effect is greater,” said Oliver Browne, Remuneration and Policy Surveys Manager at ECA International.
Despite falling rates of inflation, Europe is expected to continue to trail behind the rest of the world for real-terms pay increases at 0.9% on average, compared to Asia-Pacific’s forecasted 2.2% average increase. Employees in Europe are forecast to receive the lowest global nominal pay increase on average next year.
