India to Witness Biggest Salary Hike in 2023, Tops the List Followed by Vietnam & China

According to the ECA Salary Trends Survey, which is based on data gathered from over 360 international corporations in 68 countries and cities, only 37% of nations worldwide expect to report real-term wage hikes.

According to the workforce consultancy, citing the survey results, real pay in Europe, which measure nominal wage growth less the rate of inflation, is expected to fall by an average of 1.5%.

The analysis claims that the US's real-term decline of 4.5% this year will be reversed by declining inflation next year, resulting in a real-terms salary hike of 1%.

Additionally, due to the continuous economic turmoil, UK employees experienced their worst year since the survey began in 2000. Despite an average nominal pay increase of 3.5%, incomes in real terms decreased by 5.6% as a result of average inflation of 9.1%. In 2023, they are projected to decline by an additional 4%.

Asian countries make up eight of the top 10 countries expected to have real salaries hike, led by India, up 4.6%, Vietnam, up 4%, and China, up 3.8%. 

Lee Quane, regional director for Asia at ECA International, stated: "Our poll suggests that 2023 will be another challenging year for employees all around the world. Although this is better than the 22% of countries that have seen rises this year, just around a third of the surveyed nations are predicted to see real-terms salary increases. In 2022, the average salary decreased by 3.8%, according to ECA.

Top 10 countries and their predicted real-terms salary increases in 2023:

• India (4.6 percent)

• Vietnam (4.0 percent)

• China (3.8 percent)

• Brazil (3.4 per cent)

• Saudi Arabia (2.3 percent)

• Malaysia (2.2 per cent)

• Cambodia (2.2 percent)

• Thailand (2.2 per cent)

• Oman (2.0 percent)

• Russia (1.9 per cent)

And the bottom five, with their expected decreases:

• Pakistan (-9.9 percent)

• Ghana (-11.9 per cent)

• Turkey (-14.4 percent)

• Sri Lanka (-20.5 per cent)

• Argentina (-26.1 per cent)