Ten countries across the world are tipped to report a major hike in real wages in 2014.
According to data from the ECA International Salary Trends Survey 2013/2014, Ukraine comes out on top with a year-on-year 6.1% rise in real wage growth for 2014.
China comes in second with 5% while Pakistan workers will expect to earn 4.8% more next year.
Bangladesh is forecasted to pay workers 4% more in 2014, compared to 2013, while Thailand’s salaries are set to increase by 3.9%.
Vietnam follows closely behind with 3.6%, the Philippines at 3.5%, Malaysia at 3.1%, while Bulgaria and Kenya are tied at 3.0%.
Why the Significant Hikes?
Countries that are expected to report real wage hikes are also tipped to exceed global growth rates for 2014.
Seven out of the 10 countries that will report significant rises in salaries are also expected to grow their economies faster than the International Monetary Fund’s 3.6% global growth projection.
While Bulgaria and Ukraine are not set to exceed global economic growth forecasts, they are set to beat the overall 1% eurozone growth projection.
Meanwhile, government mandated minimum wage levels are also set to have an impact on salaries as a number of the countries in the list, such as Vietnam, the Philippines, Bangladesh and Thailand have only recently granted pay increases for low-wage workers.
In Numbers
1. Ukraine
Forecast real wage growth: 6.1%
Forecast 2014 inflation rate: 1.9%
Forecast 2014 GDP growth: 1.5%
GDP per capita (2012): $7,295
2. China
Forecast real wage growth: 5.0%
Forecast 2014 inflation rate: 3.0%
Forecast 2014 GDP growth: 7.3%
GDP per capita (2012): $9,055
3. Pakistan
Forecast real wage growth: 4.8%
Forecast 2014 inflation rate: 7.9%
Forecast 2014 GDP growth: 2.5%
GDP per capita (2012): $3,056
4. Bangladesh
Forecast real wage growth: 4.0%
Forecast 2014 inflation rate: 6.5%
Forecast 2014 GDP growth: 6.0%
GDP per capita (2012): $1,963
5. Thailand
Forecast real wage growth: 3.9%
Forecast 2014 inflation rate: 2.1%
Forecast 2014 GDP growth: 5.2%
GDP per capita (2012): $9,503
6. Vietnam
Forecast real wage growth: 3.6%
Forecast 2014 inflation rate: 7.4%
Forecast 2014 GDP growth: 5.4%
GDP per capita (2012): $3,788
7. The Philippines
Forecast real wage growth: 3.5%
Forecast 2014 inflation rate: 3.5%
Forecast 2014 GDP growth: 6.0%
GDP per capita (2012): $4,380
8. Malaysia
Forecast real wage growth: 3.1%
Forecast 2014 inflation rate: 2.6%
Forecast 2014 GDP growth: 4.9%
GDP per capita (2012): $16,794
9. Bulgaria
Forecast real wage growth: 3.0% (tied-9th highest)
Forecast 2014 inflation rate: 1.5%
Forecast 2014 GDP growth: 1.6%
GDP per capita (2012): $14,103
10. Kenya
Forecast real wage growth: 3.0% (tied-9th highest)
Forecast 2014 inflation rate: 5.0%
Forecast 2014 GDP growth: 6.2%
GDP per capita (2012): $1,781
