2019 GLOBAL COMPENSATION PLANNING REPORT · 816 UZBEKISTAN 822 MIDDLE EAST REGION 823 BAHRAIN 835 IRAQ 841 ISRAEL 847 JORDAN 853 KUWAIT 859 LEBANON 865 OMAN ... HR Guide to Doing

2 0 1 9

O C T O B E R E D I T I O N — S A M P L E

G L O B A L C O M P E N S AT I O N P L A N N I N G R E P O R T

M E R C E R TA L E N T A L L A C C E S S ®

SAMPLE

TABL

E O

F C

ON

TEN

TS

4 MERCER'S GLOBAL PUBLICATIONS

5 INTRODUCTION6 REPORT STRUCTURE

7 READING THIS REPORT

12 ECONOMIC TRENDS13 AFRICA REGION

15 AMERICAS REGION

17 ASIA PACIFIC REGION

18 CENTRAL & EASTERN EUROPE REGION

20 MIDDLE EAST REGION

21 WESTERN EUROPE REGION

22 SALARY INCREASE TRENDS23 AFRICA REGION

37 AMERICAS REGION





93 SHORT-TERM INCENTIVE TRENDS94 AFRICA REGION

100 AMERICAS REGION





124 AFRICA REGION125 ALGERIA

131 ANGOLA

137 BOTSWANA

143 CAMEROON

149 DEMOCRATIC REPUBLIC OF CONGO

155 EGYPT

161 ETHIOPIA

167 GABON

173 GHANA

179 GUINEA

185 IVORY COAST

191 KENYA

197 LIBYA

203 MADAGASCAR

209 MALAWI

215 MAURITIUS

221 MOROCCO

227 MOZAMBIQUE

233 NAMIBIA

239 NIGERIA

245 RWANDA

251 SENEGAL

257 SOUTH AFRICA

263 TANZANIA

269 TUNISIA

275 UGANDA

281 ZAMBIA

287 ZIMBABWE

293 AMERICAS REGION294 ARGENTINA

300 BOLIVIA

306 BRAZIL

312 CANADA

318 CHILE

324 COLOMBIA

330 COSTA RICA

336 DOMINICAN REPUBLIC

342 ECUADOR

348 EL SALVADOR

354 GUATEMALA

360 HONDURAS

366 MEXICO

372 MEXICO-BAJIO

378 MEXICO-MONTERREY-SALTILLO

384 MEXICO-REYNOSA

390 NICARAGUA

396 PANAMA

402 PARAGUAY

408 PERU

414 PUERTO RICO

420 TRINIDAD AND TOBAGO

426 UNITED STATES

432 URUGUAY

444 ASIA PACIFIC REGION445 AUSTRALIA

451 BANGLADESH

457 CAMBODIA

463 CHINA-BEIJING

469 CHINA-CHANGSHA

475 CHINA-CHANGZHOU

481 CHINA-CHENGDU

487 CHINA-CHONGQING

493 CHINA-DALIAN

499 CHINA-GUANGDONG

505 CHINA-HANGZHOU-NINGBO

511 CHINA-HEFEI-WUHU

517 CHINA-NANJING

523 CHINA-QINGDAO

529 CHINA-SHANGHAI

535 CHINA-SHENYANG-CHANGCHUN

541 CHINA-SUZHOU

547 CHINA-TIANJIN

553 CHINA-WUHAN

559 CHINA-WUXI

565 CHINA-XIAMEN-FUZHOU

571 CHINA-XIAN

577 HONG KONG

583 INDIA

589 INDONESIA

595 JAPAN

601 MALAYSIA

607 MYANMAR

613 NEW ZEALAND

619 PAKISTAN

625 PHILIPPINES

635 SINGAPORE

641 SOUTH KOREA

647 SRI LANKA

653 TAIWAN

659 THAILAND

665 VIETNAMSAMPLE

TABL

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672 ALBANIA

678 ARMENIA

684 AZERBAIJAN

690 BELARUS

696 BOSNIA AND HERZEGOVINA

702 BULGARIA

708 CROATIA

714 CZECH REPUBLIC

720 ESTONIA

726 GEORGIA

732 HUNGARY

738 KAZAKHSTAN

744 LATVIA

750 LITHUANIA

756 MOLDOVA

762 MONTENEGRO

762 NORTH MACEDONIA

768 POLAND

774 ROMANIA

780 RUSSIA

786 SERBIA

792 SLOVAKIA

798 SLOVENIA

804 TURKEY

810 UKRAINE

816 UZBEKISTAN

822 MIDDLE EAST REGION823 BAHRAIN

835 IRAQ

841 ISRAEL

847 JORDAN

853 KUWAIT

859 LEBANON

865 OMAN

871 QATAR

877 SAUDI ARABIA

883 UNITED ARAB EMIRATES

889 YEMEN

895 WESTERN EUROPE REGION896 AUSTRIA

902 BELGIUM

908 CYPRUS

914 DENMARK

920 FINLAND

926 FRANCE

932 GERMANY

938 GREECE

944 IRELAND

950 ITALY

956 LUXEMBOURG

962 MALTA

968 NETHERLANDS

974 NORWAY

980 PORTUGAL

986 SPAIN

992 SWEDEN

998 SWITZERLAND

1004 UNITED KINGDOM

1010 ABOUT THIS REPORT1011 METHODOLOGY

1012 DATA SOURCES

1016 GLOSSARY

1023 ABOUT MERCER

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* Exclusive to Talent All Access® subscribers** Not included in Talent All Access®

H E A LT H & B E N E F I T S

Worldwide Benefit & Employment Guidelines

Vacation and Other Leave Policies Around the World

Vacation and Other Leave Industry Scorecard

Severance Pay Policies Around the World

Severance Pay Policies Industry Scorecard

W O R K F O R C E & C A R E E R S

Global Compensation Planning

Global Compensation Planning 20 Year Look Back*

Global Pay Summary

H A N D B O O K S & G U I D E S

Compensation Handbook*

Global Mobility Handbook*

HR Guide to Doing Business*

HR Management Terms*

HR Atlas*

Incentives Around the World

Salary Movement Snapshot**

New Graduate Starting Salaries

GLO

BAL

PUBL

ICAT

ION

S

Car Benefit Policies & Alternate Transportation

Car Cost ReportCar Benefit Policies — Global Industry Findings

Global Parental Leave Global Parental Leave Industry Scorecard

Stay ahead of today’s tight deadlines and competitive race for labor with these resources. Covering local benefits, global compensation practices, and emerging HR policy trends, this portfolio contains all of the actionable data, insights, and guidance you need to steer your organization to success. Select a title to learn more about each of our industry-leading reports, or visit imercer.com/global for more information.

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Workforce MetricsAround the World

Workforce Turnover Around the World

The Design of WorkShort-term Incentive Trends — A 10 Year Review*

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GLOBAL COMPENSATION PLANNING REPORT — OCTOBER EDITION — SAMPLE5©2019 MERCER LLC.

conditions when fixing a budget for salary increases. By doing so, organizations can ensure that their employees retain their purchasing power in the market and do not suffer an unintentional pay decrease.

However, data alone cannot dictate these decisions, and employers should be wary of outliers. An extreme economic outlier may appear to indicate budgets need to be adjusted, but this is not always the case. In markets with severe volatility, a single event (such as the resumption of crude oil exports) can belie conditions on the ground. Indeed, when planning salary increase budgets, it truly is critical that employers take all available information into account.

N O T A L L E M P L O Y E E S A R E A L I K EWhile some organizations strive to be egalitarian in their salary increases, many differentiate their salary increase substantially based on the employee’s career level. Whether due to local market conditions, public sentiment, labor relations, or legislation, specific bands of employees within a single market may see a dramatic shift in their salary increase from year to year. If large organizations or those with global or regional HR functions miss these shifts, they may find themselves losing position in the local labor market. For this reason, it is critical that business and HR professionals consider all factors when comparing and employing salary increase data.

The information revolution has touched almost every aspect of the modern business environment. As market competitors race to outthink and outmatch one another, the difference between yesterday’s and today’s data is often the margin between stagnation and success. This distinction is particularly true in the modern labor market, where talent scarcity and the ease of mobility are making it increasingly critical that HR professionals retain the top performers in their company while attracting outside talent. This publication is an asset to those individuals tasked with confronting this challenge.

T H E VA L U E O F G E T T I N G T H E W H O L E P I C T U R EWhile salary increase figures are undoubtedly valuable to any HR or business manager responsible for budget planning, these data alone are insufficient to effectively plan ahead. As employees in markets with skyrocketing inflation rates (for example, Zimbabwe) can attest, employers must account for local economic

T H I N K I T O V E RUsing this report, employers and HR professionals can find answers to common questions that arise during the salary increase budgeting process:

► How might economic conditions affect the impact of salary increases on my workforce?

► Should my organization adjust salary increases based on an employee’s career level?

► Are the salary increases that my organization offers in a given market more or less than those offered in similar markets?

► Which markets are experiencing the greatest changes in salary increases?

I N T R O D U C T I O N

SAMPLE

► The Short-Term Incentive Trends section includes country-level data on the prevalence of bonus programs and the median target and maximum bonuses for six different career levels.

► The Individual Market pages offer specific data for individual countries (and, in some cases cities), including economic trends, base salary practices, mandatory pay increase schemes, incentive programs, and information on hot jobs difficult to attract and retain. They also include details on the data sources used.

► The About this Report section delineates the methods of data-gathering and cleaning used for the report and lists key definitions.

One of Mercer’s most widely recognized and valued products, the Global Compensation Planning Report (GCPR), returns for its October Edition with fresh compensation and economic data for 145 markets and 124 countries around the world. In addition to economic indicators for each market in the report (including GDP growth, inflation, and unemployment rates), this publication offers salary increase forecasts, including and excluding zeroes, that can assist HR professionals establish or calibrate their own salary increase budgets for the upcoming year. With data that cover the past (2018), current (2019), and upcoming (2020) years and isolate seven different career levels, this report is a critical resource for working HR professionals responsible for the annual compensation planning process.

The report has the following sections:

► The Economic Trends section includes basic economic indicators (GDP change, inflation rate, and unemployment rate) for each market in the report. These key pieces of data are provided for each market, in a quick reference table format. Tables are organized by region.

► The Salary Increase Trends section contains quick reference tables with base salary increase data, including and excluding zeroes, for each market in the publication, separated by career level.

R E P O R T S T R U C T U R E

GLOBAL COMPENSATION PLANNING REPORT — OCTOBER EDITION — SAMPLE6©2019 MERCER LLC.SAMPLE


R E A D I N G T H I S R E P O R T

S A L A R Y I N C R E A S E T R E N D S

S A L A R Y I N C R E A S E S E X C L U D I N G A N D I N C L U D I N G Z E R O E S

MARKET

ALL EMPLOYEES

EXCLUDING ZEROES (%) INCLUDING ZEROES (%)

2018 2019 2020 2018 2019 2020

ALGERIA 6.9% 3.0% 3.0% 6.9% 3.0% 3.0%

ANGOLA 8.1% 9.4% 8.5% 8.1% 9.4% 8.5%

BOTSWANA 6.0% 7.0% 7.0% 6.0% 7.0% 7.0%

CAMEROON 4.9% 6.0% 6.0% 4.9% 6.0% 6.0%

DEMOCRATIC REPUBLIC OF CONGO 5.0% 6.0% 6.0% 5.0% 6.0% 6.0%

EGYPT 10.0% 6.0% 6.0% 10.0% 6.0% 6.0%

ETHIOPIA 10.9% 5.9% 5.8% 10.9% 5.9% 5.8%

GABON 3.3% 5.5% 5.5% 3.3% 5.5% 5.5%

GHANA 12.9% 6.0% 6.0% 12.9% 6.0% 6.0%

GUINEA 9.4% 6.0% 6.0% 9.4% 6.0% 6.0%

IVORY COAST 4.5% 5.9% 6.0% 4.5% 5.9% 6.0%

KENYA 8.0% 6.0% 6.0% 8.0% 6.0% 6.0%

LIBYA 5.3% 5.5% 5.2% 5.3% 5.5% 5.2%

MADAGASCAR 8.0% 5.5% 6.0% 8.0% 5.5% 6.0%

MALAWI 15.5% 6.0% – 15.5% 6.0% –

MAURITIUS 5.0% 5.5% 5.2% 5.0% 5.5% 5.2%

A dash indicates data are not available. Some markets do not have 2020 forecasts available at this time.

All salary increase tables and graphics are shaded purple.

The Salary Increase Trends section provides content for "all employees" and for six career levels.

Amounts are percentages and are provided both excluding and including zeroes (i.e., salary freezes).

Note: Salary increase data presented refers to an average of all industries and generally represents median values.

The Economic Trends and Salary Increase Trends sections provide three years of data for each market/country.

Data for 2018 Actual

Data for 2019 Actual/Budgeted

Data for 2020 Forecast

All markets are organized by region.

SAMPLE


S H O R T - T E R M I N C E N T I V E T R E N D S

MARKET

EXECUTIVE MANAGEMENT

BONUS PROGRAM ELIGIBILITY

MEDIAN TARGET BONUS (% OF BASE

PAY)

MEDIAN MAXIMUM BONUS (% OF BASE

PAY)



PAY)


PAY)

ALGERIA 97% 20% 30% 97% 20% 30%

ANGOLA 100% 35% 40% 100% 35% 40%

BOTSWANA 92% 20% 25% 92% 20% 25%

CAMEROON 97% 20% 31% 97% 20% 31%

DEMOCRATIC REPUBLIC OF CONGO 100% 20% 25% 100% 20% 25%

EGYPT 99% 20% 33% 99% 20% 33%

ETHIOPIA 90% 25% 51% 90% 25% 51%

GABON 90% 75% 125% 90% 75% 125%

GHANA 96% 25% 35% 96% 25% 35%

GUINEA 82% 14% 28% 82% 14% 28%

IVORY COAST 100% 20% 32% 100% 20% 32%

KENYA 93% 25% 40% 93% 25% 40%

LIBYA – – – – – –

MADAGASCAR 100% 16% – 100% 16% –

MALAWI 100% 16% 20% 100% 16% 20%

MAURITIUS 100% 20% 40% 100% 20% 40%

This column provides the median maximum bonus amount as a percentage of base salary. In the Americas region, median actual bonus amounts are reported.

Content related to Short-term Incentives is blue.

This column provides the median target bonus amount as a percentage of base salary. Short-term Incentive definitions can be found in the Glossary.

The target and maximum amounts indicate the variable pay earning potential for an individual. For example, an employee may have a target bonus of 20%, but could receive up to 30% of base salary if their performance exceeds expectations.

This number indicates the percentage of companies that allow each career level to participate in a bonus program.



SAMPLE



Data for 2019 Budgeted/Estimated

Data for 2020 ForecastM A R K E T

E C O N O M I C T R E N D S

S A L A R Y R E V I E W F R E Q U E N C Y

G R O S S D O M E S T I C P R O D U C T C H A N G E

I N F L AT I O N R AT E U N E M P L O Y M E N T R AT E

B A S E S A L A R Y I N C R E A S E S

S A L A R Y I N C R E A S E E F F E C T I V E D AT E

1st

2nd

3rd

16% JANUARY

14% MARCH

67% APRIL

This figure represents the percentage of companies that increase salaries in the month of April each year. The top three months are listed and may vary from one market to another.

Each individual market includes six pages of detailed content.


2018 2019 2020 2018 2019 2020 2018 2019 2020

1.4% 2.5% 2.7% 5.6% 6.5% 6.7% 11.7% 11.6% 12.3%

ONCE A YEAR

NO SET REVIEW DATE

MORE OFTEN

75%

20%

5%These figures indicate the percentage of companies that review salaries according to each listed time frame. Once a year is the most common practice in most markets.SAMPLE


M A R K E T

P E R C E N TA G E O F C O M PA N I E S R E P O R T I N G Z E R O S A L A R Y I N C R E A S E S

2018 2019 2020

ALL EMPLOYEES 2.9% 3.1% 2.9%

EXECUTIVE 4.0% 4.2% 4.0%

MANAGEMENT 3.0% 3.7% 3.0%

PROFESSIONAL SALES 3.0% 4.3% 3.0%

PROFESSIONAL NONSALES 3.9% 3.7% 3.9%

PARA-PROFESSIONAL WHITE COLLAR 2.9% 2.5% 2.9%

PARA-PROFESSIONAL BLUE COLLAR 4.2% 2.6% 4.2%


MEDIAN SALARY INCREASES EXCLUDING ZEROES MEDIAN SALARY INCREASES INCLUDING ZEROES

2018 2019 2020 2018 2019 2020

ALL EMPLOYEES 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

EXECUTIVE 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

MANAGEMENT 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

PROFESSIONAL — SALES 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

PROFESSIONAL — NONSALES 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

PARA-PROFESSIONAL — WHITE COLLAR 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

PARA-PROFESSIONAL — BLUE COLLAR 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

This graphic indicates whether actual, forecast, or projected salary increase budgets are being reported for the market.Median salary increases are reported

for each career level, both excluding and including zeroes.

This figure is slightly lower than the 6.6% excluding zeroes amount for this career level. In the table below, there are 11.4% of companies that reported 0% budgets for this group in 2018. The impact of a 0% increase is not always visible in the data as the median is reported.

The type of salary increase ("total" or "merit") is noted below the table.

This table indicates the percentage of companies that reported a 0% increase budget for each career level.


Data for 2019 Actual/Budgeted



Note: Values represent Total Salary Increase Budgets (see Glossary for definition).

SAMPLE


D ATA S O U R C E S

E C O N O M I C D ATA

YEAR SOURCE DATA TYPE EFFECTIVE DATE

GROSS DOMESTIC PRODUCT CHANGE

2018 International Monetary Fund, World Economic Outlook Database, October 2019 Actual October 2019

2019 International Monetary Fund, World Economic Outlook Database, October 2019 Estimated October 2019

2020 International Monetary Fund, World Economic Outlook Database, October 2019 Forecast October 2019

INFLATION RATE




UNEMPLOYMENT RATE




The majority of the economic data (GDP, inflation, and unemployment) are sourced outside of Mercer.The data source is listed separately for

each year as there are some instances where the source differs for one of the three years.

A detailed list of data sources can be found at the end of each set of country pages.


SAMPLE


ECO

NO

MIC

TRE

ND

S

SAMPLE


G R O S S D O M E S T I C P R O D U C T C H A N G E , I N F L AT I O N R AT E , A N D U N E M P L O Y M E N T R AT E

MARKETGDP CHANGE (%) INFLATION RATE (%) UNEMPLOYMENT RATE (%)

2018 2019 2020 2018 2019 2020 2018 2019 2020

ALGERIA -2.5% -2.8% -1.5% 47.6% 55.0% 42.8% 9.2% 10.9% 11.3%

ANGOLA 4.2% 4.5% 3.9% 1.5% 3.5% 3.6% 4.3% 4.0% 4.0%

BOTSWANA 1.3% 0.8% 2.0% 3.9% 3.4% 3.7% 12.4% 12.2% 11.1%

CAMEROON 1.9% 1.5% 1.8% 2.2% 2.0% 2.0% 5.8% 5.8% 6.0%

DEMOCRATIC REPUBLIC OF CONGO 4.0% 2.5% 3.3% 2.4% 2.2% 2.7% 6.9% 7.0% 7.0%

EGYPT 2.7% 3.1% 3.3% 3.2% 3.5% 3.2% 9.8% 10.8% 9.9%

ETHIOPIA 2.7% 2.5% 2.8% 2.3% 2.3% 3.1% 10.2% 9.7% 9.6%

GABON 7.0% 5.5% 5.0% 3.6% 2.0% 4.2% 5.2% 5.2% 5.2%

GHANA 1.1% 0.3% 0.2% -0.2% 0.1% 1.6% 3.7% 4.3% 4.7%

GUINEA 2.5% 2.3% 2.3% 1.1% 0.8% 1.3% 6.7% 6.7% 6.8%

IVORY COAST 3.1% 3.0% 3.1% 3.7% 4.4% 4.3% 2.8% 2.4% 2.8%

KENYA 3.7% 3.5% 3.4% 4.3% 4.4% 4.5% 4.4% 3.4% 3.1%

LIBYA 2.3% 1.7% 1.4% 4.8% 3.4% 3.6% 3.4% 3.6% 3.7%

MADAGASCAR -3.8% -5.4% -0.2% 3.9% 6.3% 3.9% 4.5% 7.5% 8.5%

MALAWI 3.9% 4.9% 5.5% 0.8% 1.9% 1.7% 6.4% 6.4% 6.0%

MAURITIUS 3.9% 1.3% 3.3% 2.3% 2.9% 3.5% 5.8% 6.0% 5.7%

MOROCCO 4.0% 2.7% 4.0% 2.2% 2.0% 3.0% 6.7% 6.2% 6.6%

MOZAMBIQUE 2.5% 2.3% 2.3% 1.1% 0.8% 1.3% 6.7% 6.7% 6.8%

NAMIBIA 3.1% 3.0% 3.1% 3.7% 4.4% 4.3% 2.8% 2.4% 2.8%

NIGERIA 3.7% 3.5% 3.4% 4.3% 4.4% 4.5% 4.4% 3.4% 3.1%

Note: GDP change and inflation rate figures represent percentage change over the previous year.

R E G I O N N A M EData for 2018 Actual/Estimated

Data for 2019 Estimated


SAMPLE

S A L A R Y I N C R E A S E T R E N D S

SALA

RY IN

CRE

ASE

TREN

DS

SAMPLE




MARKET

ALL EMPLOYEES

EXCLUDING ZEROES (%) INCLUDING ZEROES (%)

2018 2019 2020 2018 2019 2020

ALGERIA 32.0% 4.4% 5.0% 5.0% 4.4% 5.0%

ANGOLA 5.5% 4.0% 5.6% 5.5% 4.0% 5.6%

BOTSWANA 3.9% 4.8% 5.2% 3.9% 4.8% 5.2%

CAMEROON 2.6% 2.9% 3.0% 2.5% 2.8% 3.0%

DEMOCRATIC REPUBLIC OF CONGO 5.0% 4.4% 5.0% 5.0% 4.4% 5.0%

EGYPT 4.9% 4.9% 5.0% 4.9% 4.9% 5.0%

ETHIOPIA 4.2% 4.0% 4.2% 4.2% 4.0% 4.2%

GABON 5.1% 5.0% 5.0% 5.1% 5.0% 5.0%

GHANA 2.9% 2.5% 2.6% 2.9% 2.5% 2.6%

GUINEA 4.0% 3.5% 3.3% 4.0% 3.5% 3.3%

IVORY COAST 4.2% 4.2% 4.5% 4.2% 4.2% 4.5%

KENYA 4.7% 4.5% 5.0% 4.7% 4.5% 5.0%

LIBYA 5.3% 5.4% 5.2% 5.3% 5.4% 5.2%

MADAGASCAR 5.4% 5.3% 5.3% 5.4% 5.3% 5.3%

MALAWI 5.5% 5.2% 5.0% 5.5% 5.2% 5.0%

MAURITIUS 4.6% 5.1% 6.0% 4.6% 5.1% 6.0%

MOROCCO 5.2% 5.3% 5.2% 5.2% 5.3% 5.2%

MOZAMBIQUE 4.6% 5.1% 6.0% 4.6% 5.1% 6.0%


Data for 2019 Acutal/Forecast

Data for 2020 ForecastR E G I O N N A M E

SAMPLE


SHO

RT-T

ERM

INC

ENTI

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DS

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B O N U S E L I G I B I L I T Y, TA R G E T, A N D M A X I M U M

MARKET

EXECUTIVE MANAGEMENT



PAY)


PAY)



PAY)


PAY)

ALGERIA 92% 28% 25% 93% 16% 15%

ANGOLA 93% 24% 20% 81% 14% 12%

BOTSWANA 92% 30% 29% 88% 17% 15%

CAMEROON 92% 35% 37% 84% 15% 14%

DEMOCRATIC REPUBLIC OF CONGO 86% 30% 28% 80% 18% 16%

EGYPT 83% 25% 22% 83% 16% 15%

ETHIOPIA 93% 24% 20% 81% 14% 12%

GABON 79% 23% 19% 67% 14% 11%

GHANA 93% 22% 19% 74% 14% 13%

GUINEA 87% 20% 24% 69% 14% 14%

IVORY COAST 85% 25% 21% 82% 13% 12%

KENYA 67% 22% 20% 74% 13% 15%

LIBYA 84% 25% 25% 73% 15% 13%

MADAGASCAR 85% 24% 23% 81% 15% 14%

MALAWI 80% 27% 27% 87% 16% 17%

MAURITIUS 67% 22% 20% 74% 13% 15%

MOROCCO 84% 25% 25% 73% 15% 13%

MOZAMBIQUE 85% 24% 23% 81% 15% 14%

NAMIBIA 80% 27% 27% 87% 16% 17%

Note: Bonus program eligibility represents the percentage of companies that offer a bonus program to each career level.

R E G I O N N A M E

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R E G I O NN A M E

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ION

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E

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S A L A R Y R E V I E W F R E Q U E N C Y

G R O S S D O M E S T I C P R O D U C T C H A N G E

I N F L AT I O N R AT E U N E M P L O Y M E N T R AT E

2018 2018 20182019 2019 20192020 2020 2020

B A S E S A L A R Y I N C R E A S E S

S A L A R Y I N C R E A S E E F F E C T I V E D AT E

1st

2nd

3rd

16% JANUARY

14% MARCH

67% APRILONCE A YEAR

NO SET REVIEW DATE

MORE OFTEN

75%

20%

5%

1.4% 2.5% 2.7% 5.6% 6.5% 6.7% 11.7% 11.6% 12.3%


Data for 2019 Estimated

Data for 2020 ForecastM A R K E T N A M E

SAMPLE





P E R C E N TA G E O F C O M PA N I E S R E P O R T I N G Z E R O S A L A R Y I N C R E A S E S

2018 2019 2020

ALL EMPLOYEES 5.9% 6.3% 5.0%

EXECUTIVE 8.1% 9.1% 6.7%

MANAGEMENT 6.5% 6.8% 4.6%

PROFESSIONAL SALES 6.1% 6.8% 4.6%

PROFESSIONAL NONSALES 5.8% 6.8% 4.6%

PARA-PROFESSIONAL WHITE COLLAR 6.0% 6.8% 4.6%

PARA-PROFESSIONAL BLUE COLLAR 5.6% 6.8% 4.6%


MEDIAN SALARY INCREASES EXCLUDING ZEROES MEDIAN SALARY INCREASES INCLUDING ZEROES

2018 2019 2020 2018 2019 2020

ALL EMPLOYEES 2.6% 2.9% 3.0% 2.5% 2.8% 3.0%

EXECUTIVE 2.6% 2.9% 3.0% 2.5% 2.7% 3.0%

MANAGEMENT 2.6% 2.9% 3.0% 2.5% 2.8% 3.0%

PROFESSIONAL SALES 2.6% 2.9% 3.0% 2.5% 2.8% 3.0%

PROFESSIONAL NONSALES 2.6% 2.9% 3.0% 2.5% 2.8% 3.0%

PARA-PROFESSIONAL WHITE COLLAR 2.6% 2.9% 3.0% 2.5% 2.8% 3.0%

PARA-PROFESSIONAL BLUE COLLAR 2.5% 2.9% 3.0% 2.5% 2.8% 3.0%


M A R K E T N A M E

SAMPLE


ORGANIZATION PERFORMANCE

LENGTH OF SERVICE

INFLATION

POSITION IN SALARY RANGE

INDIVIDUAL PERFORMANCE

MARKET POSITION/COMPETITIVENESS

JOB LEVEL

FA C T O R S T H AT D E T E R M I N E I N D I V I D U A L S A L A R Y I N C R E A S E S

This market does not have a mandatory pay increase policy.

M A N D AT O R Y PAY I N C R E A S E S C H E M E S

61%

98%

61%

20%

8%

52%

70%

M A R K E T N A M E

SAMPLE


VA R I A B L E B O N U S B Y E M P L O Y E E L E V E L

S H O R T - T E R M I N C E N T I V E S

EXECUTIVE MANAGEMENT PROFESSIONAL SALES

PROFESSIONAL NONSALES

PARA- PROFESSIONAL WHITE COLLAR

PARA- PROFESSIONAL BLUE COLLAR

BONUS PROGRAM ELIGIBILITY 92% 84% 71% 71% – –

MEDIAN TARGET BONUS (% OF BASE PAY) 35% 15% 10% 10% – –

MEDIAN MAXIMUM BONUS (% OF BASE PAY) 37% 14% 11% 11% – –

F R E Q U E N C Y O F VA R I A B L E B O N U S PAY O U T S

ANNUALLY95% QUARTERLY4% 1% MONTHLY1% SEMI-ANNUALLY

D I F F I C U LT T O AT T R A C T J O B FA M I L I E S A N D L E V E L S

AT T R A C T I N G A N D R E TA I N I N G E M P L O Y E E S

JOB FAMILY LEVEL

FINANCE All Levels

PROJECT ENGINEERING All Levels

SALES All Levels

SALES & MARKETING All Levels

TOP MANAGEMENT All Levels

D I F F I C U LT T O R E TA I N J O B FA M I L I E S A N D L E V E L S

JOB FAMILY LEVEL

MARKETING All Levels

FINANCE All Levels

SALES All Levels

SALES & MARKETING All Levels

– –

M A R K E T N A M E

SAMPLE


D ATA S O U R C E S

E C O N O M I C D ATA

M A R K E T N A M E

YEAR SOURCE DATA TYPE EFFECTIVE DATE

GROSS DOMESTIC PRODUCT CHANGE




INFLATION RATE




UNEMPLOYMENT RATE




SAMPLE


YEAR SOURCE NUMBER OF PARTICIPANTS EFFECTIVE DATE

SALARY INCREASES

2018 Mercer's Salary Movement Snapshot, September 2018 43 August 2018



SHORT-TERM INCENTIVES

2019 Mercer's Total Remuneration Survey, 2019 79 May 2019

OTHER DATA (POLICY CONTENT RELATED TO SALARY INCREASES, STI, AND ATTRACTION & RETENTION)

2019 Mercer's Total Remuneration Survey, 2019 79 May 2019

S A L A R Y I N C R E A S E S , S H O R T - T E R M I N C E N T I V E S , O T H E R D ATA

D ATA S O U R C E S

M A R K E T N A M E

SAMPLE

A B O U T T H I S R E P O R T

ABO

UT T

HIS

REP

ORT

SAMPLE


This section provides information on the methods of collecting, collating, and analyzing data for this publication. Below are notes on exceptions and exclusions in the data, details on data sources, relevant equations, and currency conversion rates. Readers will also find a glossary of key terms.

M E T H O D O L O G YGCPR’s methodology primarily relies on proprietary Mercer data combined with a comprehensive review and update process. The report allows HR practitioners to easily understand the economic climate and market trends in the locations in which they have employees.

The salary increase data in the report provide insights into pay trends for budgeting and salary budget forecasts. These data are available for a period of three years overall, as well as for six specific career levels by country.

The GCPR October 2019 report covers salary increase information for the previous year (2018) and the current year (2019), as well as a forecast for the upcoming year (2020). The categorization of career levels is:

► All employees

► Executive

► Management

► Professional Sales

► Professional Nonsales

► Para-professional white collar

► Para-professional blue collar

The October edition includes updated information, where available, for:

► Economic trends

► Base salary increases

► Mandatory pay increase schemes

► Short-term incentives

► Attracting and retaining employees


U P D AT E P R O C E S SGCPR combines regional and local salary increase survey data to offer a global planning resource for Mercer’s clients. The basis for salary increase figures includes country survey data (TRS and SMS) and regional sources (such as the Latin America Economic Trends Report), which are locally and/or regionally peer reviewed, then integrated into GCPR. Regular quarterly reviews of GCPR-Online and in-between updates, if applicable, ensure that GCPR is up-to-date and provides the latest trends.

MET

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Y

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27©2019 MERCER LLC. GLOBAL COMPENSATION PLANNING REPORT — OCTOBER EDITION — SAMPLE

DATA SOURCES

AFRICAGROSS DOMESTIC PRODUCT CHANGE — DATA SOURCE

2018 2019 2020

ALGERIA International Monetary Fund, World Economic Outlook Database, April 2019

International Monetary Fund, World Economic Outlook Database, April 2019


ANGOLA International Monetary Fund, World Economic Outlook Database, April 2019



BOTSWANA International Monetary Fund, World Economic Outlook Database, April 2019



CAMEROON International Monetary Fund, World Economic Outlook Database, April 2019



DEMOCRATIC REPUBLIC OF CONGO




EGYPT International Monetary Fund, World Economic Outlook Database, April 2019



ETHIOPIA International Monetary Fund, World Economic Outlook Database, April 2019



GABON International Monetary Fund, World Economic Outlook Database, April 2019



GHANA International Monetary Fund, World Economic Outlook Database, April 2019



GUINEA International Monetary Fund, World Economic Outlook Database, April 2019



IVORY COAST International Monetary Fund, World Economic Outlook Database, April 2019



KENYA International Monetary Fund, World Economic Outlook Database, April 2019



LIBYA International Monetary Fund, World Economic Outlook Database, April 2019


International Monetary Fund, World Economic Outlook Database, April 2019SAMPLE

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Y



C U R R E N C Y C O N V E R S I O N R AT E S

COUNTRY CURRENCY CONVERSION

AFRICA CODE USD 1= EUR 1=

ALGERIA DZD DZD118.35 DZD137.86

ANGOLA AOA AOA285.39 AOA332.46

BOTSWANA BWP BWP10.79 BWP12.57

CAMEROON XAF XAF563.08 XAF655.95

DEMOCRATIC REPUBLIC OF CONGO CDF CDF1596.45 CDF1859.75

EGYPT EGP EGP17.90 EGP20.85

ETHIOPIA ETB ETB27.72 ETB32.30

GABON XAF XAF563.08 XAF655.95

GHANA GHS GHS4.78 GHS5.57

GUINEA GNF GNF9060.02 GNF10554.29

IVORY COAST XOF XOF563.08 XOF655.95

KENYA KES KES100.83 KES117.46

LIBYA LYD LYD1.38 LYD1.61

MADAGASCAR KES KES100.83 KES117.46

COUNTRY CURRENCY CONVERSION

AFRICA CODE USD 1= EUR 1=

MALAWI MWK MWK725.99 MWK845.73

MAURITIUS MUR MUR34.41 MUR40.08

MOROCCO MAD MAD9.41 MAD10.96

MOZAMBIQUE MZN MZN60.61 MZN70.61

NAMIBIA NAD NAD14.74 NAD17.17

NIGERIA NGN NGN361.90 NGN421.59

RWANDA RWF RWF870.95 RWF1014.60

SENEGAL XOF XOF563.08 XOF655.95

SOUTH AFRICA ZAR ZAR14.74 ZAR17.17

TANZANIA TZS TZS2284.06 TZS2660.77

TUNISIA TND TND2.78 TND3.24

UGANDA UGX UGX3789.97 UGX4415.06

ZAMBIA ZMW ZMW11.00 ZMW12.81

ZIMBABWE ZWL ZWL361.90 ZWL421.59

Note: Currency conversion rates as of October 5, 2019.SAMPLE

MET

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Y



G R O S S D O M E S T I C P R O D U C T ( G D P )The output of goods and services produced by labor and property. GDP has five main components: private consumption expenditure, fixed capital formation, increase in stocks, government consumption expenditure, and the net of exports of goods and services less imports of goods and services. The GDP data in this report refers to percentage change over the previous year’s GDP, at a constant price.

I N F L AT I O NA term that refers to increases in prices for a constant market basket of goods. It is the average annual change in the consumer price index, which may differ from end-of-year figures. The cause of inflation is a general increase in the money supply, without a corresponding increase in the amount of goods and services available.

U N E M P L O Y M E N T R AT EThe percentage of economically active persons wholly unemployed or temporarily laid off. Unemployment generally comprises all persons above a specified age who, during the reference period, were without work, currently available for work, and seeking work. National definitions of employment and unemployment differ from country to country.

E C O N O M I C M A R K E T

SAMPLE

Condition of SaleCopyright © 2019. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or be transmitted in any form or by any means, electronic or mechanical, photocopying, recording or otherwise, without the prior written permission of the publishers. No responsibility for loss occurring to any person acting or refraining from acting as a result of the material in this publication can be accepted by the authors or the publishers.

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A B O U T M E R C E R Mercer delivers advice and technology-driven solutions that help organizations meet the health, wealth and career needs of a changing workforce. Mercer’s more than 23,000 employees are based in 44 countries and the firm operates in over 130 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), the leading global professional services firm in the areas of risk, strategy and people. With nearly 65,000 colleagues and annual revenue over $14 billion, Marsh & McLennan helps clients navigate an increasingly dynamic and complex environment. Marsh & McLennan Companies is also the parent company of Marsh, which advises individual and commercial clients of all sizes on insurance broking and innovative risk management solutions; Guy Carpenter, which develops advanced risk, reinsurance and capital strategies that help clients grow profitably and pursue emerging opportunities; and Oliver Wyman, which serves as a critical strategic, economic and brand advisor to private sector and governmental clients. For more information, visit www.mercer.com. Follow Mercer on Twitter @Mercer.

SAMPLE

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http://www.mmc.com/

http://usa.marsh.com/

http://www.guycarp.com/portal/extranet/index.html?vid=77

http://www.oliverwyman.com/index.html

http://www.mercer.com/

http://www.twitter.com/mercer

Copyright 2019 Mercer LLC. All rights reserved. 19-GCPR-OCTOBER-SAMPLE

For further information, please contact your local Mercer office or visit our website at www.imercer.com

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Documents

2019 GLOBAL COMPENSATION PLANNING REPORT · 816 UZBEKISTAN 822 MIDDLE EAST REGION 823 BAHRAIN 835 IRAQ 841 ISRAEL 847 JORDAN 853 KUWAIT 859 LEBANON 865 OMAN ... HR Guide to Doing