2021 | sample global compensation planning

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2021 | sample

global compensation planning

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Flexible Working Policies

& Practices

Global Parental Leave

Salary Movement Snapshot*

Workforce Metrics Around

the World

Worldwide Benefit & Employment

Guidelines

Workforce Turnover Around

the World

Incentives Around the World

Vacation and Other Leave Policies

Severance Pay Policies

Car Benefit Policies

Global Compensation

Drivers

Global Pay Summary

The Design of Work

Global Compensation

Planning

Car Cost Report

Employee Engagement Survey

Toolkit

Global Incentive Benefits

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8 Report structure

10 Reading this report

47 Africa

135 Algeria141 Angola147 Botswana153 Cameroon

159 Democratic Republic of the Congo

165 Egypt171 Ethiopia177 Gabon183 Ghana189 Ivory Coast195 Kenya201 Libya207 Madagascar209 Malawi213 Mauritius

47 Middle East

135 Bahrain141 Iraq147 Israel153 Jordan159 Kuwait165 Lebanon171 Oman177 Qatar183 Saudi Arabia189 United Arab Emirates195 Yemen

47 Africa

219 Morocco225 Mozambique231 Namibia237 Nigeria243 Rwanda249 Senegal255 South Africa261 Tanzania267 Tunisia273 Uganda279 Zambia285 Zimbabwe

Note: You may find this report easier to navigate by using bookmarks. Watch this short video to learn more.

Table of contents

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Report structure

The 2021 Global Compensation Planning Report (GCPR) offers salary increase forecasts for 145 markets in 124 countries around the world. With salary increase and economic data that cover the past (2020), current (2021), and upcoming (2022) years, this report is a critical resource for working HR professionals responsible for the annual compensation planning process.

The report has the following sections:

Reading this report The Reading this report section provides details about the report format and data being reported.

Individual market 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, promotional increases, and incentive programs. They also include details on the data sources used.

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

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©2021 Mercer LLC. 4 Global Compensation Planning — Sample

Reading this report

Three years of economic indicators and the status of the data are provided.

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Reading this report

The percentage of companies that increase salaries according to each listed time frame. Once a year is the most common practice in most markets.

Any mandatory pay increase requirements are detailed here.

The percentage of companies that increase salaries in the months listed. The top three months are provided and may vary from one market to another.

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Reading this report

Separate tables are provided for excluding and including zeros. Salary increases excluding zeros excludes all salary freeze data to represent only those organizations implementing a salary increase.

The type of salary increase is noted below the table.

Estimated EstimatedMedian salary increases are reported for each career level, both excluding and including zeros.

Average salary increases are reported for each career level, both excluding and including zeros.

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Estimated Estimated

Reading this reportSeparate tables are provided for excluding and including zeros. Salary increases including zeros are based on all responses to represent the overall market, including those organizations implementing salary freezes.

Salary increases are reported for all employees and by career level.

Actual, estimated, or forecast salary increase budgets are reported for the market.

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Reading this report

This table indicates the percentage of companies that reported a salary freeze in each of the three calendar years.

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Reading this report

The salary increase percentage for a promotion is provided. These amounts are representative of a percentage of base salary increase.

The percentage of employees receiving a promotion is provided.

Both median and average values are provided.

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Reading this report

The data source is listed separately for each year in instances where the source differs for one of the three years.

The majority of the economic data (GDP, inflation, and unemployment) are sourced outside of Mercer.

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

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Region SAMPLE


Market SAMPLE


1 EUR = 1.2 USD 1 USD = 0.83 EUR 1 EUR = 1.00 EUR

Economic indicators

Col1 Gross domestic product change Inflation rate Unemployment rate

2020 Actual/estimated 1.4% 2.5% 2.7%

2021 Estimated 1.4% 2.5% 2.7%

2022 Forecast 1.4% 2.5% 2.7%

Note: Unemployment estimates and projections that are based on the World Employment and Social Outlook Trends 2021 are subject to a considerable degree of uncertaintydue to COVID-19. Country data published after the date of the publication of these estimates could differ.

Market

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Salary practices

Salary increase frequency

Most common salary increase effective month

Mandatory pay increase schemes

This market does not have mandatory pay increase requirements.

Market

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Salary increasesSalary increases excluding zeros, 2020–2022

Median salary increases Average salary increases

Career 2020 2021 2022 2020 2021 2022

Actual Actual Forecast Actual Actual Forecast

All employees 6.5% 6.5% 7.0% 6.5% 6.5% 7.0%

Executive 6.5% 6.5% 7.0% 6.5% 6.5% 7.0%

Management 6.5% 6.5% 7.0% 6.5% 6.5% 7.0%

Professional sales 6.5% 6.5% 7.0% 6.5% 6.5% 7.0%

Professional nonsales 6.5% 6.5% 7.0% 6.5% 6.5% 7.0%

Para-professional white collar 6.5% 6.5% 7.0% 6.5% 6.5% 7.0%

Para-professional blue collar 6.5% 6.5% 7.0% 6.5% 6.5% 7.0%

Note: Values represent total salary increase budgets (see Glossary for definition).

Market

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Salary increases including zeros, 2020–2022

Median salary increases Average salary increases

Career 2020 2021 2022 2020 2021 2022

Actual Actual Forecast Actual Actual Forecast

All employees 6.5% 6.5% 7.0% 6.5% 6.5% 7.0%

Executive 6.5% 6.5% 7.0% 6.5% 6.5% 7.0%

Management 6.5% 6.5% 7.0% 6.5% 6.5% 7.0%

Professional sales 6.5% 6.5% 7.0% 6.5% 6.5% 7.0%

Professional nonsales 6.5% 6.5% 7.0% 6.5% 6.5% 7.0%

Para-professional white collar 6.5% 6.5% 7.0% 6.5% 6.5% 7.0%

Para-professional blue collar 6.5% 6.5% 7.0% 6.5% 6.5% 7.0%

Note: Values represent total salary increase budgets (see Glossary for definition).

Market

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Salary freezesPercentage of companies reporting salary freezes

Career 2020 2021 2022

All employees 19.4% 10.1% 4.5%

Executive 20.8% 11.6% 3.6%

Management 20.7% 10.9% 4.2%

Professional sales 19.7% 9.3% 4.0%

Professional nonsales 19.9% 10.3% 4.2%

Para-professional white collar 21.9% 9.8% 4.4%

Para-professional blue collar 17.9% 11.1% 3.9%

Market

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Promotional increases

Note: Overall salary increase for promotion is representative of a percentage of base salary increase. Percentage of employees receiving a promotion is representative of theportion of the employee population.

Overall salary increase for promotion, 2019–2021 Percentage of employees receiving promotion, 2019–2021

Market

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Sources

Topic Data type Year Data source Number ofparticipants

Publicationdate

Economic indicators Gross domestic productchange

International Monetary Fund, World Economic OutlookDatabase – April 2021

Economic indicators Inflation rate International Monetary Fund, World Economic OutlookDatabase – April 2021

Economic indicators Unemployment rate International Labour Organization, World Employment andSocial Outlook Trends – May 2021

Salary practices Salary practices 2020 Mercer's Total Remuneration Survey – October 2020

Salary practices Mandatory pay increaseschemes 2020 Local Mercer consultant expertise – October 2020

Salary increases Salary increases 2020 Mercer's Salary Movement Snapshot 186 September2020

Salary increases Salary increases 2021 Mercer's Salary Movement Snapshot 202 June 2021

Salary increases Salary increases 2022 Mercer's Salary Movement Snapshot 202 June 2021

Salary freezes Salary freezes 2020 Mercer's Salary Movement Snapshot 186 September2020

Salary freezes Salary freezes 2021 Mercer's Salary Movement Snapshot 202 June 2021

Salary freezes Salary freezes 2022 Mercer's Salary Movement Snapshot 202 June 2021

Promotional increases Promotional increases 2019 Mercer's Salary Movement Snapshot 193 December 2019



2020–2022

2020–2022

2020–2022

Market

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about this

reportSAMPLE


This section provides information on the methods of collecting, collating, and analyzing data for this product. You will also find notes on exceptions and exclusions in the data, information on data sources, relevant equations, and currency conversion rates along with a glossary of key terms.

Methodology

Data collectionData for this product were collected from the following primary data sources:

• Mercer’s Salary Movement Snapshot (SMS)

• Mercer’s Latin America Economic Trends

• Mercer’s Total Remuneration Survey (TRS)

• International Monetary Fund, World Economic Outlook Database

Note: Sources may differ for select markets; refer to the data sources page in each set of country pages for more information.

Data analysisThe results of other locally run Mercer surveys may differ to GCPR. This is largely due to the mix of companies participating in each of these surveys. Our GCPR data source is typically comprised of a larger number of multinational companies than locally run surveys. Each set of data are valid according to the information provided. We recommend using more than one data source to ensure you are gathering perspectives from all segments of a market when determining salary increases.

StatisticsThe following statistics are presented in this report:

• P25 or 25th percentile: The data point that is higher than 25% of all other data in the sample when ranked from low to high. Also known as the first quartile.

• Median or 50th percentile: The data point that is higher than 50% of all other data in the sample when ranked from low to high.

• P75 or 75th percentile: The data point that is higher than 75% of all other data in the sample when ranked from low to high. Also known as the third quartile.

• Average: The sum of all data reported divided by the number of data observations in the sample. Also known as the mean.

• Prevalence: The percentage of companies that provided a response to a question with a defined number of options to choose from. For example, a single response question or a multiple response (select all that apply) style question.

• In single response questions, the sum of all responses may not equal 100% due to rounding.

• In multiple response questions, the sum of all responses will be greater than 100%.

• N or sample size: The number of companies that reported data for the statistic.

• En dash or “–”: The sample is too small to provide the statistic.

• Excluding zeros: Represents salary increases of companies that are increasing salaries (excluding salary freezes).

• Including zeros: Represents salary increases of all companies, including those with salary freezes.

Data maskingTo ensure the confidentiality of all companies that provide data to Mercer’s surveys, statistics have been “masked” by displaying an en dash or “–” when minimum sample sizes are not met.

• A minimum of three data points are required to report the average and prevalence percentages.

• A minimum of four data points are required to report the 50th percentile or median.

• A minimum of five data points are required to report the 25th and 75th percentiles.SA

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Mercer believes in building brighter futures by redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and well-being. Mercer’s more than 25,000 employees are based in 44 countries and the firm operates in over 130 countries. Mercer is a business of Marsh & McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people, with 76,000 colleagues and annual revenue of $17 billion. Through its market-leading businesses including Marsh, Guy Carpenter and Oliver Wyman, Marsh & McLennan helps clients navigate an increasingly dynamic and complex environment. For more information, visit www.mercer.com. Follow Mercer on Twitter @Mercer.

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2021 | sample global compensation planning