The data states that average pay rises will remain subdued in 2013 (3.3% compared to 5.5% in 2012), as European countries continue to feel the effects of the Euro crisis.
The research, based on the salary expectations of more than 20,000 reward specialists in 69 countries worldwide, indicates that wage growth in the UK will be subdued at 3% - the same as Germany. France's wage growth will stand at 2.5%.
Yet in Europe's emerging countries, pay will climb significantly next year, with fast-growing economies such as Ukraine (10%), Russia (9%), and Turkey (8%) bucking the trend with inflated pay increases.
Ben Frost, global product manager at Hay Group, said: "Employees in developed markets face a tough year ahead, with pay rises falling behind - or barely outstripping - inflation."
He added: "In times of slow growth, organisations in these countries are keen to minimise cost and drive productivity. However, they must still ensure that staff are rewarded appropriately and that remuneration budgets are used wisely - leaders must communicate effectively with staff and be creative with the benefits on offer."
