For the first time in several years, employees in multiple regions saw salary increases in the positive range for 2013, mainly due to lower inflation rates.
When adjusted for inflation, Aon Hewitt says average salary increases rose in all regions except for Africa.
However, projected salary spending for 2014 is expected to vary amid continued global economic and political uncertainty.
In 2014, workers in Europe and North America are projected to see salary increases at 2.1% and 1.7%, respectively, after factoring in inflation, up from 1% and 1.1% in 2013.
Salary increases for workers in Asia Pacific and Latin America are projected to be flat year on year, while workers in Africa and the Middle East will see decreases.
“Due to ongoing economic challenges in many regions around the world, companies are remaining conservative with their compensation budgets,” says Yanina Koliren, global compensation surveys and solutions leader at Aon Hewitt. “Salaries are increasing, but inflation plays a key factor in whether employees see an impact on their paycheques. This year, improved interest rates in multiple regions mean good news for many employees around the world.”
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