With so many companies, both large and small, having offices around the globe and salary budgets still tight, understanding international salary increase trends is important. ECA International recently published its salary trends analysis for 2004/2005. ECA establishes current local national market pay and benefit levels applicable to a wide range of general functional and operational positions from junior office staff to senior management. The survey covers a panel of 40 countries.
According to ECA, the anticipated average salary increase within this panel is 4.91%, but after inflation, the merit increase will average only 2.04%
Egyptian nationals will enjoy the largest increase—13% (5.7% after consideration of inflation). New Zealand, Poland and South African workers will receive the smallest anticipated increases after consideration of inflation. The United States increases will average 4%—only a point above inflation. The smallest increases will be paid to Japanese locals (2%). And although Russians will see average pay increases of 10%, after inflation, that amounts to just over 1%.
The following chart shows salary increase trend information for 12 countries:
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2005 Average Salary Increase |
IMF 2005 Inflation Forecast |
Net Increase |
Japan |
2.00% |
-0.10% |
2.10% |
New Zealand |
3.00% |
2.80% |
0.20% |
France |
3.00% |
2.10% |
0.90% |
Germany |
3.00% |
1.30% |
1.70% |
UK |
3.50% |
1.90% |
1.60% |
USA |
4.00% |
3.00% |
1.00% |
Poland |
4.50% |
3.80% |
0.70% |
South Africa |
6.50% |
5.70% |
0.80% |
China |
6.80% |
3.00% |
3.80% |
Brazil |
10.00% |
5.90% |
4.10% |
Russia |
10.00% |
8.90% |
1.10% |
Egypt |
13.00% |
5.70% |
7.30% |
ECA International is the world’s largest membership organization for international Human Resources, serving a global network of over 4000 HR professionals in 35 countries.
The full Salary Trends Report is available for purchase. Participants in the survey receive the report free. For further information, please contact Lauren Smith, ECA International, (212) 582-2333 or via e-mail at Lauren.smith@eca-international.com.
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