Pay increases around the world have not been affected as badly by 11
September as anticipated.
The terrorist attacks have failed to lower the projected pay rises for 2002,
with many countries expecting increases of about 2 per cent above inflation.
A report by HR consultancy William M Mercer shows that 33 of the 62
countries surveyed expected pay increases of at least 2 per cent above the
projected rate of inflation. Most of the other countries still think pay rises
will be higher than inflation. Only a handful, including Russia, Colombia and
Ecuador, expect pay rises to be outstripped by inflation.
In the UK, projected rises are between 3.2 and 4.5 per cent, depending on
the employee category, and the rate of inflation is expected to be 2.1 per
Safarina Kardany, senior researcher at William M Mercer, said, "Despite
unsteady economic conditions, most workers stand to make gains in buying power
Countries in the EU are projecting moderate inflation of between 1.4 and 3.8
per cent with pay rises mostly in the range of 2 to 5 per cent. The only
exception is Ireland, which is predicting pay rises of 7.5 per cent.