What Brexit uncertainty? Wages will RISE 'by 2.5 per cent next year'
WAGES will rise by 2.5 per cent next year despite economic uncertainty caused by Brexit, a report claims.
Brexit uncertainty has not hampered wages which are set to rise by 2.5 per cent
With inflation forecast at around 0.6 per cent real wage growth will be 1.9 per cent, said management consultants Korn Ferry Hay Group.
UK pay rises will be higher than the average 1.7 per cent across western Europe.
Its global study found that workers in Vietnam will enjoy the biggest rises of 7.2 per cent while those in Venezuela, Argentina and Egypt will see pay fall.
Real wage growth in the UK will be 1.9 per cent
We're entering an era of restrained growth and higher inflationReal wage growth in the UK will be 1.9 per cent
Ben Frost, of Korn Ferry Hay, said that UK workers will be better off in the New Year than those in France or Germany.
He added: "Across the western world, including North America and Australia, we're entering an era of restrained growth and higher inflation.
"Company pay policy is typically slow to react to macro-economic shifts, but right now businesses cannot afford to be complacent.
The impact of higher minimum wages
UK pay rises will be higher than the average 1.7 per cent across western Europe
"Inflation is going to rise, and companies will be forced to decide what will bear the brunt of this.
"Do they suppress pay and leave employees out of pocket? Or do they place the squeeze on their own profit margins?
"If wages do not increase in line with inflation, companies could risk losing their key talent."