Pay rises in the UK are likely to average 3.6% next year, compared with an expected inflation rate of 2.5%.
Workers can look forward to higher pay next year
Optimism remains that the global economy will improve, according to Mercer Human Resource Consulting.
But employers want to keep a lid on fixed costs, including wages, the report by the human resources management group says.
In Europe, average pay rises are expected to reach 5% in Greece, although inflation could touch 3.5%.
Meanwhile, in the Republic of Ireland wages are set to rise by 4.4%, with an inflation rate of 3.2%.
Workers in Venezuela are likely to receive the highest pay rises in the world next year at almost 29%.
However, inflation in the country could increase to 37%, according to the report.