SA wages to increase 7% in 2015
South African companies are forecastng a 7% pay increase for staff in 2015, according to the ECA Salary Trends survey.
ECA’s 2014/2015 Salary Trends Survey reports current and projected salary increases for local employees, based on information collected from 340 multinational companies across 66 countries and regions.
South Africa’s 7% increase is amongst the 20 highest recorded by the survey (19th highest); however, in real terms, taking inflation into account (currently at 5.9%), this only translates to a 1.2% increase – the 44th highest increase in the world, ECA noted.
Global salary predictions
According to company predictions from around the globe, wages will rise 5.8% on average in 2015, slightly up on this year’s 5.6% average.
Companies in Argentina are forecasting the survey’s highest pay rises in 2015, with employers predicting a 28% pay rise for staff next year on average.
“However, once inflation of over 27% has been factored in these large increases will have little impact on spending power,” the group noted.
The lowest increases globally have been forecast by companies in the European locations of Greece, Ireland, Portugal, Spain and Switzerland. Pay increases of 2% in 2015 are expected there.
However, wages will rise 3.5% in Europe on average.
Salaries in Asia are expected to increase by 7.2% in 2015 with the largest uplifts being given in Pakistan and the lowest in Japan.
Factoring in inflation, real wage rises in Asia will average 2.7% – higher than the other regions surveyed.
In mainland China, companies are planning to award 8% salary increases again next year. Even after inflation, staff in China will be among the best off within the region and globally: they can expect to see increases of 5.5% in real terms.
Employees in the Middle East are set to see wages rise 4.7% on average. In Australia, companies are forecasting 3.5% pay rises for their staff.