According to a Mercer HR Consulting study, Spanish wages should increase by 4.1% next year (down from 4.6% this year.) This rise, judged reasonable given the expected inflation rate of 3.5%, confirms the "stationary" tendency that has prevailed in the past few years despite the economy's good results and a 3.5% GDP's annual growth. The study also addresses the question of wages' structure and social advantages that companies allocate their employees. (Ref 06891)
A change in payment structure. According to Mercer -which studied the mechanisms of wage increases in 200 companies representing the Spanish economy- employers have a tendency to reward individual merit, rather than automatic recognition of seniority and the rise of living costs. Only 41% of the surveyed firms use the cost of living index to work out the rise. Hardly 5% use the seniority criteria. This explains why the expected growth is higher than the 3% rise that should apply in 2007, based
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