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Monday, January 30, 2023

Will wages beat inflation?

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With the increases that were granted this year, the salaries of employees outside the collective agreement increased by close to 90% in the year. A percentage that, in any case, would be below inflation, which is estimated to be closer to 97/100%.

“The inflationary index marked the continuous modifications of the 2022 salary budgets and 2023 will be no exception,” said Marcela Angeli, Director of Work & Rewards.

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Another point to note is the frequency with which the companies are giving the adjustments. More than 50% of the companies gave or are giving 4/5 or more increases in the year. “Although it was something that we had been observing, now it is more established. To graph it, almost 65% of the surveyed sample provided 4 adjustments or more,” said WTW.

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Salary projections 2023

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There are still changes regarding the projections of the 2023 budget. The October edition reported that next year close to 75% was planned and in this new edition it is already observed that the number changed to 80%. However, this percentage is subject to change.

This increase, or whatever it finally is, the companies state that they grant it at least 4 times.

Measures to mitigate inflation

The WTW report indicates that “beyond increasing the salary budget -which is something we have been seeing for a long time- nothing very outstanding is found regarding measures that are implemented to alleviate the inflationary impact.”

“The only thing that is mentioned within the sample is what I mentioned a couple of paragraphs above and it has to do with the number of increases granted. We went from 2/3 last year to 4/5 and up to 6 opportunities today. The other measures are not significant, since only 16% of companies plan to implement new benefits. These are particular situations that do not mark a trend at the market level. Nor are they atypical benefits of those that are usually provided,” he adds.

Monetary Benefits

The monetary benefits are those that are granted through an amount of money and, like the salary, are being updated so as not to lose value with respect to the issues they cover.

Among them, the ones that stand out the most are the car or the payment for the use of one’s own for labor issues, lunch expenses, childcare, and the Internet.

Source: Ambito

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