Pakistan's salary hike -9.9% in 2023 , in bottom five

[manpk77]

These are the top 10 countries and their predicted real-terms salary increases in 2023:

1. India (4.6%)
2. Vietnam (4.0%)
3. China (3.8%)
4. Brazil (3.4%)
5. Saudi Arabia (2.3%)
6. Malaysia (2.2%)
7. Cambodia (2.2%)
8. Thailand (2.2%)
9. Oman (2.0%)
10. Russia (1.9%)

And the bottom five, with their expected decreases:

1. Pakistan (-9.9%)
2. Ghana (-11.9%)
3. Turkey (-14.4%)
4. Sri Lanka (-20.5%)
5. Argentina (-26.1%)

Source: https://www.bloomberg.com/news/arti...-next-year-soaring-inflation-dents-wage-hikes

 

[nahtanbob]

Is this in local currency or dollar adjusted ?

 

[Indos]

Is this in local currency or dollar adjusted ?

When people think about their salary, they will think in their own country currency

 

[my2cents]

When people think about their salary, they will think in their own country currency

Combine with hyper inflation Pakistan is facing troublesome road ahead.

 

[Indos]

Combine with hyper inflation Pakistan is facing troublesome road ahead.

Turkey and Iran inflation is much worst, Pakistan inflation comes from natural cause of high energy crisis and the USD appreciation, the inflation will come down next year when energy price stabilize and The Fed stop their monetary tightening policy. The inflation is calculated with YoY, so when next year the price is the same with this year, the inflation will be zero

Iran and Turkey inflation I think comes from unnatural cause, printing the money to cover their budget deficit or we call it Quantitative easing, Central Bank buying Government bond to finance state budget deficit.

 

[Dual Wielder]

The establishment accomplishment bringing the country to it's knees since their founding father Ayub usurped the throne and declared himself it's emperor.. (field marshal?).. what a joke..

 

[my2cents]

Turkey and Iran inflation is much worst, Pakistan inflation comes from natural cause of high energy crisis and the USD appreciation, the inflation will come down next year when energy price stabilize and The Fed stop their monetary tightening policy

Energy rich Iran in the bottom 5 is a surprise. No wonder Iranian people are so against the current regime.

 

[Indos]

Energy rich Iran in the bottom 5 is a surprise. No wonder Iranian people are so against the current regime.

I would love to analyse the problem in Iran and Turkey economy if I get all necessary data, but usually hyperinflation is always caused by Central Bank that is not independent and economic policy that is not managed prudently.

This happened to Indonesia during Soekarno time when Indonesia has big budget to buy military equipment and launched invasion to Malaya

After Soeharto came to power, the thing he would do is to fix the country finance and being discipline in doing monetary and fiscal policy. He puts the best Economists Indonesia ever had into his government, Wijoyo Nitisasro and also he put the best Engineer Indonesia ever had, Habibie, to develop SOE in strategic sector

Check Indonesia inflation during Soekarno period 1960-1966

Compare it with Soeharto period

 

[Indos]

These are the top 10 countries and their predicted real-terms salary increases in 2023:

1. India (4.6%)
2. Vietnam (4.0%)
3. China (3.8%)
4. Brazil (3.4%)
5. Saudi Arabia (2.3%)
6. Malaysia (2.2%)
7. Cambodia (2.2%)
8. Thailand (2.2%)
9. Oman (2.0%)
10. Russia (1.9%)

And the bottom five, with their expected decreases:

1. Pakistan (-9.9%)
2. Ghana (-11.9%)
3. Turkey (-14.4%)
4. Sri Lanka (-20.5%)
5. Argentina (-26.1%)

Source: https://www.bloomberg.com/news/arti...-next-year-soaring-inflation-dents-wage-hikes

The real term salarie increase on those 10 countries I believe related to the expectation of the people toward their government minimum wage adjustment. Here in Indonesia minimum wage is adjusted every year, so the increasing expectation on next year salary doesnt always mean positive sentiment about the future but most likely about expectation on minimum wage adjustment by government, particularly because currently the world is having higher inflation than during the normal time.

In general, inflation this year for those 10 countries is about 6-10 percent, so expecting the salary to raise only around 1-5 % is still not enough to cover the difference.

 

[manpk77]

The real term salarie increase on those 10 countries I believe related to the expectation of the people toward their government minimum wage adjustment. Here in Indonesia minimum wage is adjusted every year, so the increasing expectation on next year salary doesnt always mean positive sentiment about the future but most likely about expectation on minimum wage adjustment by government, particularly because currently the world is having higher inflation than during the normal time.

In general, inflation this year for those 10 countries is about 6-10 percent, so expecting the salary to raise only around 1-5 % is still not enough to cover the difference.

India, Brazil and China do not have inflation rate of 10% more over their PPP is higher than any other country. So that adjusts the inflation.

 

[nahtanbob]

When people think about their salary, they will think in their own country currency

Decline in nominal salaries with increase in inflation does not happen normally

 

[Indos]

Decline in nominal salaries with increase in inflation does not happen normally

It is expectation right ? I think the expectation comes from the expectation that the economy will go bad next year, thus they think more salary cut will happen as private sector try to adjust their business with the economic condition

 

[MH.Yang]

My salary has not increased this year. This is the only year that I haven't increased my salary since I started working.

 

[nahtanbob]

It is expectation right ? I think the expectation comes from the expectation that the economy will go bad next year, thus they think more salary cut will happen as private sector try to adjust their business with the economic condition

if there is inflation businesses are making more nominal dollars. that is the expectation in theory. Otherwise where is inflation ?

 

[Splurgenxs]

Working the same job , salary increases are slow.
If you want a higher salary , switch jobs and negotiate higher for the first 8-10 years of exp.
After, start a side venture, or you might get set in a rut.