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Argentinian employees to receive the highest salary increases in the world next year

  • Argentinian professionals expected to receive 7.2% real-terms salary increase in 2018, leaping 22 places in the global rankings
  • Average real-terms increase across the globe forecast to be 1%
  • Employees in Egypt and Nigeria to be worst off
  • Real salary increases in Asia-Pacific to continue to lead the world in 2018, filling eight of the top ten positions in the global rankings

According to the latest Salary Trends Report by ECA International (ECA), Argentinian employees in the private sector are expected to receive a salary increase of 25 percent in 2018. After factoring in inflation, forecast to be 17.8 percent¹, employees will experience an impressive increase of 7.2 percent in real terms, the largest in the world.

President Macri’s market-friendly policies are expected to bear fruit in Argentina next year, causing inflation to cool and bringing respite to hard-pressed workers after years of low or negative real salary increases. As a result, Argentina has jumped 22 places in the 2018 global rankings, topping the chart for the highest real salary increase in the world.

- Steven Kilfedder, Production Manager at ECA International

Despite both expecting to see 10 percent nominal salary increases next year, Egypt and Nigeria find themselves at the bottom of the global rankings thanks to high inflation, which will likely far outweigh pay rises and cause real decreases of 11.2 and 4.8 percent respectively.

ECA is the world’s leading provider of information, software and expertise for the management and assignment of employees around the world. ECA's annual Salary Trends Report analyses current and projected salary increases for local employees in 71 countries across the world. 

Asia-Pacific leads the way 

Asia-Pacific countries continue to outperform the rest of the world, occupying eight of the top ten spots in the global rankings with above-inflation salary increases across the board. Despite slower economic growth, China is forecast to rank seventh in the world next year and will maintain its ever-present record in the top ten of ECA’s ranking of global real salary increases. Top spot in the region is taken by India, with a 4.9 percent real salary increase predicted.

Employees in Japan will receive the lowest rate of increase in the region next year with companies forecasting salaries to increase by 2.2 percent in nominal terms. However, in real terms, Australians will see the lowest increase in their earnings in 2018, with real wages expected to rise by only 0.8 percent. 

Europe sees inflation and limited growth

Although there are early signs of growth in some major European economies, expected real salary increases still lag behind those of a few years ago. Real wage growth in Germany and France is expected to be less than half the rate of 2015 at 1.2 percent and 0.9 percent respectively.

Russia is forecast to move to the top of the European rankings in 2018. As its economy stabilises and inflation falls, employees in Russia are set to receive a 3.1 percent real salary increase next year.

Kilfedder added, “Despite the early signs of economic growth returning to much of Europe in 2018, the average real wage rise across the continent is expected to be only 1 percent. On the bright side, however, for the first time in five years no European nation is expected to experience a real salary decrease with Ukraine and Portugal at the bottom of the regional rankings receiving real-terms pay freezes.”

Americas show improvement

In the Americas, average real salary increases are predicted to be 1.6 percent, slightly higher than in 2017 (1.4 percent). Employees in Mexico in particular look set to benefit from lower inflation in 2018 to record a real-terms increase of 0.8 percent compared to a 1.3 percent pay cut in 2017. Uplifts for the USA and Canada are set to remain steady, at 0.9 and 1.1 percent respectively.

Africa and Middle East affected by inflation

Lower inflation in Ghana will help the country to leap 51 places globally and top the regional rankings for Africa and Middle East, with employees predicted to enjoy a 4.7 percent real pay hike.

The imminent introduction of VAT in the countries of the Gulf Cooperation Council has raised inflation forecasts. Saudi Arabia and Qatar are particularly affected with both anticipated to experience real salary decreases as a result, dropping from among the highest ranked nations in the region in 2017 to the lowest in 2018.

¹ Forecast inflation rates are based on information from the International Monetary Fund.

Global top 20 - Real wage increase forecast rankings

 

Global Rank
Countries
Real wage increase 2018
Nominal salary increase 2018
Argentina
1
1
India
2
6
Ghana
3
2
Indonesia
4
9
Vietnam
4
8
Thailand
6
24
China
7
20
Bangladesh
8
7
Pakistan
8
10
Cambodia
10
15
Russia
11
15
Brazil
12
15
Philippines
12
20
Singapore
14
33
Korea Republic
15
29
Taiwan
15
33
Sri Lanka
17
14
Israel
18
46
Morocco
19
33
Bulgaria
20
42
Malaysia
20
23

-Ends-

Notes to Editors

Rooster will coordinate comment and interview opportunities for Steven Kilfedder, Production Manager at ECA International.

For further press information, please contact:

Yasmine Triana / Aaryn Vaughan / James Brooke
Rooster PR
T: +44 (0)20 3440 8934
E: ECAInternational@rooster.co.uk

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