Nigeria’s inflation will impact greater to workers’ pay rise while there is relief for Ghana, South Africa, Tanzania and Uganda. Kenyans will not feel the rise
A new projection by Korn Ferry, a global organizational consulting firm has warned that a high rate of inflation expected in 2019 will eat into any payrise workers in Africa will get.
Of particular, the projection gives a negative gain for workers in Nigeria while those in Kenya and Uganda will only marginally gain. Ghana, Tanzania and South Africa will be much better than their other African colleagues.
The projection notes although top-line salaries will increase by 7.7 percent in Africa, high inflation means the real increase is predicted to be only 0.9 percent.
In Egypt, salaries are expected to increase by 15 percent, but a 14.4 percent inflation rate means employees will only see a 0.6 percent real-wage increase.
Ghana has the highest expected relief with the workers in this west African country receiving an average pay rise f 13.6 percent while the expected inflation will be 10 percent giving them a relief of 3.6 percent.
In Nigeria, things will not be rosy as despite Nigerian expecting a 11.0 percent payrise, the inflation at 13.6% will therefore give them a negative relief, meaning they will not feel it.
Kenya and Uganda will have a relief of between 0.4 percent and 1.1 percent while those in Tanzania will enjoy a a greater relief of more than 1.5 percent.
Korn Ferry reveals that, adjusted for inflation, real-wage salaries globally are expected to grow only an average of 1.0 percent in 2019. This is down from a 1.5 percent prediction for 2018.
“With inflation rising in most parts of the world, we’re seeing a cut in real-wage increases across the globe,” said Bob Wesselkamper, Korn Ferry Global Head of Rewards and Benefits Solutions. “The percentage of salary increase or decrease will vary by role, industry, country and region, but one thing is clear, on average, employees are not seeing the same real pay growth they did even one year ago.”
The data was drawn from Korn Ferry’s pay database which contains data for more than 20 million job holders in 25,000 organizations across more than 110 countries.
It shows predicted salary increases, as forecasted by global HR leaders, for 2019 and compares them to predictions made at this time last year regarding 2018. It also compares them to 2019 inflation forecasts from the Economist Intelligence Unit.