2019 GLOBAL COMPENSATION PLANNING REPORT

MERCER TALENT ALL ACCESS? 2019

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

PLANNING REPORT

SAMPL OCTOBER EDITION -- SAMPLE

TABLE OF CONTENTS

4 MERCER'S GLOBAL PUBLICATIONS

124 AFRICA REGION

293 AMERICAS REGION

481 CHINA-CHENGDU

5 6 7

12 13 15 17 18 20 21

22 23 37 51 65 79 86

93 94 100 106 112

118 121

INTRODUCTION REPORT STRUCTURE READING THIS REPORT

ECONOMIC TRENDS AFRICA REGION AMERICAS REGION ASIA PACIFIC REGION CENTRAL & EASTERN EUROPE REGION MIDDLE EAST REGION WESTERN EUROPE REGION

SALARY INCREASE TRENDS AFRICA REGION AMERICAS REGION ASIA PACIFIC REGION CENTRAL & EASTERN EUROPE REGION MIDDLE EAST REGION WESTERN EUROPE REGION

SHORT-TERM INCENTIVE TRENDS AFRICA REGION AMERICAS REGION ASIA PACIFIC REGION CENTRAL & EASTERN EUROPE REGION MIDDLE EAST REGION WESTERN EUROPE REGION

125 ALGERIA

294 ARGENTINA

131 ANGOLA

300 BOLIVIA

137 BOTSWANA

306 BRAZIL

143 CAMEROON

312 CANADA

149 DEMOCRATIC REPUBLIC OF CONGO 318 CHILE

155 EGYPT

324 COLOMBIA

161 ETHIOPIA

330 COSTA RICA

E 167 GABON

336 DOMINICAN REPUBLIC

173 GHANA

342 ECUADOR

179 GUINEA

348 EL SALVADOR

185 IVORY COAST

354 GUATEMALA

191 KENYA

360 HONDURAS

L 197 LIBYA

366 MEXICO

203 MADAGASCAR

372 MEXICO-BAJIO

209 MALAWI

378 MEXICO-MONTERREY-SALTILLO

215 MAURITIUS

384 MEXICO-REYNOSA

221 MOROCCO

390 NICARAGUA

P 227 MOZAMBIQUE

396 PANAMA

233 NAMIBIA

402 PARAGUAY

239 NIGERIA

408 PERU

245 RWANDA

414 PUERTO RICO

251 SENEGAL

420 TRINIDAD AND TOBAGO

257 SOUTH AFRICA

426 UNITED STATES

263 TANZANIA

432 URUGUAY

M 269 TUNISIA

275 UGANDA

444 ASIA PACIFIC REGION

281 ZAMBIA

445 AUSTRALIA

287 ZIMBABWE

451 BANGLADESH

457 CAMBODIA

A 463 CHINA-BEIJING

469 CHINA-CHANGSHA

S 475 CHINA-CHANGZHOU

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 VIETNAM

671

CENTRAL & EASTERN EUROPE REGION

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 REGION

895 WESTERN EUROPE REGION

1010 ABOUT THIS REPORT

823 BAHRAIN 835 IRAQ 841 ISRAEL 847 JORDAN 853 KUWAIT 859 LEBANON 865 OMAN

E 871 QATAR

877 SAUDI ARABIA 883 UNITED ARAB EMIRATES

SAMPL 889 YEMEN

896 902 908 914 920 926 932 938 944 950 956 962 968 974 980 986 992 998 1004

AUSTRIA BELGIUM CYPRUS DENMARK FINLAND FRANCE GERMANY GREECE IRELAND ITALY LUXEMBOURG MALTA NETHERLANDS NORWAY PORTUGAL SPAIN SWEDEN SWITZERLAND UNITED KINGDOM

1011 METHODOLOGY 1012 DATA SOURCES 1016 GLOSSARY

1023 ABOUT MERCER

TABLE OF CONTENTS

ORDER NOW

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

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

E actionable data, insights, and

guidance you need to steer your organization to success. Select a title to learn more about each of

L our industry-leading reports, or

visit global for more information.

GET EVERYTHING IN ONE PLACE

P Subscribe to the Talent All Access?

Portal for exclusive access to online tools and all of our publications, or schedule a demo with a Mercer

M representative.

Car Benefit Policies & Car Benefit Policies -- Alternate Transportation Global Industry Findings

Car Cost Report

Global Parental Leave

Global Parental Leave Industry Scorecard

Severance Pay Policies Severance Pay Policies Vacation and Other Leave Vacation and Other Leave Worldwide Benefit &

Around the World

Industry Scorecard Policies Around the World Industry Scorecard

Employment Guidelines

WORKFORCE & CAREERS

Global Compensation

Global Compensation

Global Pay Summary

Planning

Planning 20 Year Look Back*

Incentives Around the World

New Graduate Starting Salaries

Salary Movement Snapshot**

Short-term Incentive

The Design of Work

Trends -- A 10 Year Review*

HANDBOOKS & GUIDES

Workforce Metrics Around the World

Workforce Turnover Around the World

SA LEARN MORE

DEMO VIDEO

Compensation Handbook*

Global Mobility Handbook*

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

HR Atlas*

HR Guide to Doing Business*

HR Management Terms*

I N T R O D U C T I O N The information revolution has

touched almost every aspect of the modern business environment. As market competitors race to outthink and outmatch one another,

E the difference between yesterday's

and today's data is often the margin between stagnation and success. This distinction is particularly true

L 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

P while attracting outside talent. This

publication is an asset to those individuals tasked with confronting this challenge.

THE VALUE OF

M G E T T I N G T H E W H O L E

PICTURE

While salary increase figures are undoubtedly valuable to any HR or business manager responsible for budget planning, these data alone

A are insufficient to effectively plan ahead. As

employees in markets with skyrocketing inflation rates (for example, Zimbabwe) can attest,

S employers must account for local economic

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.

NOT ALL EMPLOYEES ARE ALIKE

While 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.

THINK IT OVER

Using 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?

?2019 MERCER LLC.

5

GLOBAL COMPENSATION PLANNING REPORT -- OCTOBER EDITION -- SAMPLE

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

E 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

L 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.

P 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

M 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

SA by career level.

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.

?2019 MERCER LLC.

6

GLOBAL COMPENSATION PLANNING REPORT -- OCTOBER EDITION -- SAMPLE

RS AEL AA RDY I INN CGR ETAHS EI ST R RE NEDPS O R T 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

All markets are organized

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

by region.

ALL EMPLOYEES

E MARKET

EXCLUDING ZEROES (%)

Data for 2018 Data for 2019 Data for 2020

Actual Actual/Budgeted Forecast

INCLUDING ZEROES (%)

ALGERIA ANGOLA

L BOTSWANA

2018 6.9% 8.1% 6.0%

2019 3.0% 9.4% 7.0%

2020

2018

TchoentSeanltarfyo3rIn.0"ca%rlleeamseplToryeenedss"saencdt6ifo.o9nr%psrixovides

career leve8l.s5.%

8.1%

7.0%

6.0%

2019 3.0% 9.4% 7.0%

2020 3.0% 8.5% 7.0%

CAMEROON

4.9%

DEMOCRATIC REPUBLIC OF CONGO

5.0%

EGYPT

P ETHIOPIA

GABON

10.0% All salary increase tables and graphics are 10.9%

shaded purple.

3.3%

6.0% 6.0% 6.0% 5.9% 5.5%

6.0% 6.0% 6.0% 5.8% 5.5%

4.9% 5.0% 10.0% 10.9% 3.3%

6.0%

6.0%

Amounts a6r.e0%percentages and 6ar.0e%provided

both excluding and including zeroes (i.e.,

salary free6z.0e%s).

6.0%

5.9%

5.8%

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

M LIBYA

MADAGASCAR

8.0% 5.3% 8.0%

6.0% 5.5% 5.5%

6.0% 5.2% 6.0%

A8d.0a%sh indicates data a6r.e0%not available. So5.m3%e markets do not h5a.5ve%2020 fo8r.0e%casts available at t5h.i5s%time.

6.0% 5.2% 6.0%

MALAWI

15.5%

6.0%

?

15.5%

6.0%

?

MAURITIUS

5.0%

5.5%

5.2%

5.0%

5.5%

5.2%

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

?2019 MERCER LLC.

7

GLOBAL COMPENSATION PLANNING REPORT -- OCTOBER EDITION -- SAMPLE

READING THIS REPORT

This column provides the median maximum bonus

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

BONUS PROGRAM ELIGIBILITY

E ALGERIA

97%

ANGOLA BTOhTisSnWuAmNbAer indicates the percentage

L ColeAfvMceEol RtmoOpOpaNanrietiscitphaatteailnloawbeoancuhs career

DpEroMgOrCaRmA.TIC REPUBLIC OF CONGO EGYPT

100% 92% 97% 100% 99%

ETHIOPIA

90%

GABON

90%

P GHANA This column provides the median96%

GUINEA target bonus amount as a percen8t2a%ge

IVORY

COAodSefTfbinaisteiosnaslacrayn.

Short-term be found in

tInhceen1t0iv0e%

KENYA Glossary.

93%

LIBYA

?

M MADAGASCAR

100%

MALAWI

100%

SA MAURITIUS

100%

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

EXECUTIVE

MANAGEMENT

MEDIAN TARGET

MEDIAN MAXIMUM

BONUS (%COoFnBtAeSnEt relaBtOeNdUtSo(%ShOoFrtB-AtSeErm

PAYIn) centives is blue. PAY)

20%

30%

BONUS PROGRAM ELIGIBILITY

97%

MEDIAN TARGET BONUS (% OF BASE

PAY)

20%

35%

40%

100%

35%

20%

25%

92%

20%

20%

31%

97%

20%

20%

25%

100%

20%

20%

33%

99%

20%

25%

51%

90%

25%

75%

125%

90%

75%

25%

35%

96%

25%

14%

28%

82%

14%

20%

The tar3g2e%t and maximum am1o0u0n%ts indicate the va2ri0a%ble pay

earning potential for an individual. For example, an employee

25%

may ha4v0e%a target bonus of 9230%%, but could receiv2e5%up

?

to 30% o?f base salary if their?performance exceed?s

expectations.

16%

?

100%

16%

16%

20%

100%

16%

20%

40%

100%

20%

MEDIAN MAXIMUM BONUS (% OF BASE

PAY) 30% 40% 25% 31% 25% 33% 51% 125% 35% 28% 32% 40%

? ? 20% 40%

?2019 MERCER LLC.

8

GLOBAL COMPENSATION PLANNING REPORT -- OCTOBER EDITION -- SAMPLE

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