Wage increases: 5 increases are imposed per year and only one sector reaches 77% per year

Accelerating inflation is also accelerating all price increases in the economy, from food to wages.

While at the beginning of the year it was estimated that the wages of out-of-contract workers – from bosses to managers – would beat prices, at this time of year the equation has turned upside down.

With inflation estimated by companies at 70.6% (and even 100% by some consultants), Salary increases planned for this year are on average 71%, according to the latest survey carried out by Mercer, which specializes in human resources, of 473 companies.

Anyway, this is the August photo. The film realizes that companies are giving more increases per year and updating their budgets faster.

While last year most companies (35%) gave 2 increases, in 2022 35% will give 3. The number of companies that will grant 4 increased from 18 to 31% in one year and those who give 5 or more have gone from 15 to 22%. Only 12% will give a raise or two.

“What we see is a upward revision of the increase budget for the second half and, adFurthermore, the addition of another instance of adjustment salary, “he says Ivan Thornton, Mercer’s career director.

“Today, nearly 90% of the market makes 3 or more adjustments. the more unstable the context, the more cases of salary review there is, “he adds.

So volatile that the average increase went from 50% in February to 54.6% in May and 71% in August.

Only one sector of the economy would reach 77% this year: engineering and construction. In the ranking of above-average increases, fintech follows (75.58%); businesses in the retail or retail trade (75.30%); insurance (75.26%); energy-oil and gas (75.21%); financial services (74.78%); automotive / auto components (72.84%); high tech: services, software and e-commerce (72.80%); manufacturing (72.44%); agriculture (72.12%); logistics (72.12%) and services (71.94%).

“At the moment, we don’t see any sector (at the median level) beating inflation. However, in the history of recent years, there have been some sectors that have received more than the average and, in some cases, have outpaced inflation. These are fintech and high tech (especially software development), “says the consultant.

For Thornton, this year in particular the oil and gas sector stands outwhich was lagging behind in previous years, engineering, construction and retail. “

What will happen in 2023

As for 2023, the companies plan to concede an increase of 60%, with inflation estimated at a 61.8%. According to private sources, annual inflation is expected to be 73.8% next year.

“The budget year has just begun. Normally, companies predict a value that is very much in line with the inflation initially forecast, knowing this It will be a number that you should check frequentlysays Thornton.

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