Salaries across the globe are expected to rise by an average of 5.9% next year, 1.9% above the inflation rate, according to research.
UK pay is projected to increase by an average of 3.6% with inflation rates at 1.9%, the survey of 60 countries by Mercer HR consulting showed.
The average pay increase in nearly two-thirds (63%) of the countries surveyed was predicted to be between 1% and 3.5% above inflation.
The highest salary rises are expected in Venezuela, with an average of 17.4%. Germany registered the lowest potential pay rise at just 2.3%.
Greece was found to have the highest increase in Western Europe at 5%, followed closely by Ireland at 4.5%.
Steve Gross, a global partner at Mercer, said: “Pay increases tend to vary significantly around the world, depending on country-specific factors such as inflation, economic growth and unemployment. Global companies need to be especially aware of these key economic and labour market differences when setting compensation budgets and deciding how to allocate resources to generate the greatest return on their investment.”
Pay levels in Eastern Europe are also expected to increase dramatically in the next year. Latvia is predicted to see an average rise of 11.1% while workers in Lithuania can expect a 7.3% increase.
“Demand for low-cost, well-educated employees is increasing in Eastern Europe. In particular, the need for skilled workers with marketing, engineering and IT expertise continues to drive up salaries,” said Gross.