In 2024, workers in the Asia-Pacific region are anticipated to experience the most significant real pay increase, with an expected average growth of 2.2%. This surpasses the global average of 1%. North and South America are projected to see a 2% real salary growth, while Africa and the Middle East may experience 0.8% growth.
Conversely, Europe lags behind, with an anticipated 0.9% real salary increment, and the UK is likely to witness a 1.3% increase. High inflation has made it challenging for UK businesses to offer substantial pay awards to their employees, leading to larger increases possibly being spread over a longer period. In the Asia-Pacific region, India, Indonesia, and China are forecasted to have the highest real salary increases in 2024, at 5.1%, 4.3%, and 4.1% respectively.
Most locations in the APAC region are expected to maintain or surpass their 2023 real salary growth rates in 2024, with the exceptions being Sri Lanka and New Zealand. Hong Kong's nominal wages remained at 4% this year and are expected to do the same in 2024 due to lower inflation rates.
Meanwhile, employees in Hong Kong could see a 1.7% real salary increase in 2024, slightly down from 2023. Furthermore, workers in China are forecasted to receive a 4.1% real salary increase in 2024, marking the third-highest hike in the region due to lower inflation rates when compared to the rest of the world.