While soaring inflation is set to put a major dent in salary increases for the second year running in 2023, Asian nations make up eight of the top 10 countries forecast to see real salaries rise, led by India, up 4.6%, Vietnam rising 4.0% and China up 3.8%.
The worst-hit region is likely to be Europe, where real salaries — nominal wage growth minus the rate of inflation — are seen being driven down an average 1.5%, according to workforce consultancy ECA International.
India's neighbours Pakistan and Sri Lanka are placed bottom in this list whereas Brazil’s 3.4% increase and Saudi Arabia’s 2.3% bump round out the top five.
In the United States, the real salaries drop of 4.5 per cent this year is set to be reversed by drop in inflation next year, leading to a 1 per cent real term salary hike.