Hard-pressed British workers can look forward to a wage boost next year, new data has suggested, but for even more money they need to move to Ukraine or India.
According to the latest Salary Trends Report by ECA International UK employees in the private sector are expected to see a real salary increase of 0.8% in 2019 equivalent to 20 extra month or 237.35 per year before tax.
That’s double the 0.4% increase experienced in 2018.
The real salary increase is calculated based on the difference between the forecast nominal salary increase 3% in the UK and inflation at 2.2%.
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The ECA said the rise was welcome but that a bad Brexit settlement when the UK leaves the EU in March could cause inflation to increase and salary growth to fall.
the 0.8 per cent salary rise that were expecting to see in 2019 is double what UK workers received last year. Although the UK’s nominal salary increase, at 3 per cent, is expected to be among the highest in Western Europe, the real salary rise is in line with the European average because of higher inflation eating into workers buying power, ” said Steven Kilfedder, Production Manager at ECA International.
? It is still very unclear what impact Brexit could have on inflation and salaries in the UK. Any deal that is made, or lack of it, could have far-reaching implications on wage and price rises and these figures could change significantly depending on what happens between now and the official withdrawal date in March 2019.
The average real salary increase across Europe is expected to be 0.8%, unchanged from 2018, while inflation in Europe is forecast to be the lowest in the world next year at 1.8% on average.
Ukraine topped the chart for the highest real salary increase forecasted in Europe at 2.7%. It is also the only European country to be in the top 10 for highest real salary increases in the world next year, and the only nation outside of the Asia-Pacific region.
India topped the global chart for real salary increases, with a 5.1% rise over six times more than UK employees.