Congrats! Your prospects of getting a raise in 2016 look good.
A large survey by the management consultancy Korn Ferry Hay Group found that companies in major developed nations around the world are planning to give their employees a healthy pay bump.
And since inflation is forecast to be especially low next year, workers can expect more bang for their bucks.
The biggest wage increases will go to Chinese and Indian workers, since their economies are growing fast..
The Korn Ferry Hay Group survey shows Chinese companies are planning to give employees an 8% pay boost next year, on average. Low inflation means workers will see a real wage increase of 5.9%.
Employees in India can expect a 10.3% salary bump, though the majority of those gains will be eroded by an expected 5.3% inflation rate.
Workers in all G7 nations — the United States, United Kingdom, France, Italy, Japan, Canada and Germany — should expect average pay increases of between 1.9% to 3%.
American workers can expect the biggest pay raise: 3%. But once inflation is factored into the equation, they will only be getting 1.4% more compared to 2015.
Italians can expect the best deal in terms of a higher salary combined with low inflation, leaving them with a “real” salary increase of 2%.
Here’s how the numbers break down in other countries:
Canada: 2.6% raise – 1.8% inflation = Real salary increase of 0.8%
France: 1.9% raise – 1% inflation = Real salary increase of 0.9%
Germany: 2.9% raise – 1.2% inflation = Real salary increase of 1.7%
Japan: 2% raise – 1.3% inflation = Real salary increase of 0.7%
United Kingdom: 2.5% raise – 1% inflation = Real salary increase of 1.5%
Ben Frost, a salary consultant at Korn Ferry Hay, told CNNMoney that it’s good to see that companies are planning to raise wages above inflation levels.
“Companies have chosen not to follow inflation,” he said. “That is quite surprising. It’s a benefit for employees.”
Research from the International Labour Organization backs up the findings from Korn Ferry Hay. The ILO forecasts that real wages in the developed world will increase by 1.5% next year, after rising by 1.4% in 2015. The preceding years barely saw any wage growth.
But Brazilians and Russians are expected to be left out in the cold.
Even though employers in these countries say they will raise wages in 2016, it won’t be enough to counteract the impact of high inflation, leaving employees feeling poorer than they were beforehand.
And Aussies can expect their raises to be completely wiped out by inflation, leaving them in the same place as they were in 2015.
The survey by Korn Ferry Hay was compiled based on responses from nearly 8,500 global companies that employ over 11 million people.