India to witness better salary hike than China & Pakistan in 2023, claims survey
The ECA's Salary Trends survey is based on the data collected from over 360 multinational companies across 68 countries and cities.
India is among the top eight countries which is expected to witness salary hike in 2023, this amid soaring inflation. The Asian countries including China, Vietnam and Saudi Arabia are among the top 10 nations which are expected to witness real salaries hike, Bloomberg quoted ECA's Salary Trends Survey report.
India's neighbours Pakistan and Sri Lanka are placed bottom in this list.
The survey is based on the data collected from over 360 multinational companies across 68 countries and cities. Brazil (3.4%) and Saudi Arabia (2.3%) are the other countries in the top 5 list.
However, Europe is likely to be the worst-hit region where real salaries are being seen driven down an average 1.5 per cent. Real salaries are nominal wages growth minus the rate of inflation.
The employees in the United Kingdom suffered their biggest hit this year, with their salaries in real terms falling by 5.6 per cent despite a 3.5 per cent nominal pay increase. The survey claims that their real salaries are set to drop by another four per cent next year, Bloomberg reported.
In the United States, the real salaries drop of 4.5 per cent this year is set to be reversed by drop in inflation next year, leading to a 1 per cent real term salary hike.
Lee Quane, the ECA International's Regional Director for Asia, said the survey indicates another tough year for workers globally in 2023 as only a third of countries surveyed are set to see real terms salary increase.
Here is a list of top ten countries and their predicted real terms salary increases next year.
| COUNTRY | % SALARY INCREASE |
|---|---|
| INDIA | 4.6 |
| VIETNAM | 4.0 |
| CHINA | 3.8 |
| BRAZIL | 3.4 |
| SAUDI ARABIA | 2.3 |
| MALAYSIA | 2.2 |
| CAMBODIA | 2.2 |
| THAILAND | 2.2 |
| OMAN | 2.0 |
| RUSSIA | 1.9 |
Talking about bottom five countries, here is the list of countries with their expected decreases:
| COUNTRY | % SALARY DECREASE |
|---|---|
| PAKISTAN | 9.9 |
| GHANA | 11.9 |
| TURKEY | 14.4 |
| SRI LANKA | 20.5 |
| ARGENTINA | 26.1 |
