Mercer Global Compensation Plan.pdf

H E A LT H W E A LT H C A R E E R

2016

GLOBAL COMPENSATION PLANNING REPORT OCTOBER EDITION

PUBLICATIONS DIRECTOR Samantha Polovina CREATIVE DIRECTOR Stefani Baldwin PRODUCT MANAGER Chrisy Wilson PRODUCTION MANAGER Sumit Bajaj PROJECT MANAGER Rahi Sardana ANALYSTS Ankur Bora Ashvinder Kaur Deepak Gaur Divya M Sunil Kaushal Vishal Singla WRITER Austin Lotz COPYEDITORS Ankita Rawat Divya Prakash DESIGNERS Nidhi Rastogi Rahul Khannawalia Vishal Kapoor PUBLISHED BY: MERCER 1166 Avenue of the Americas, New York, New York 10036, United States

© 2016 Mercer LLC. LLC.

In today’s competitive race to attract and retain highly skilled global talent, organisations require current, in-depth information on everything from local statutory benefits, to salary trends, to managing a diverse workforce. Learn about our extensive product lineup at www.imercer.com/global. WE WANT TO HEAR FROM YOU! We love getting feedback from our clients on how we can improve our publications. We also make every effort to promptly answer any questions you may have about our data or analysis. Take a moment and share your thoughts with us. For information about your order or other Mercer products, contact your nearest Mercer office: ASIA, MIDDLE EAST, AND AFRICA

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DATA MINING & INSIGHTS In today’s competitive race to attract and retain highly skilled global talent, organisations require current, in-depth information on everything from local statutory benefits, to salary trends, to managing a diverse workforce. Through Mercer’s own extensive global presence, we collect and analyse data and insights that help companies take the actions necessary to support their human capital strategies. You can order any of the publications below by clicking on the title links or by visiting www.imercer.com/global.

H E A LT H W E A LT H C A R E E R

2016

GLOBAL CAR POLICIES

Compensation Handbook

Global Car Policies

Global Compensation Planning Report

Global Diversity and Inclusions Handbook

Global Mobility Handbook

Global Pay Summary

H E A LT H W E A LT H C A R E E R

2016

SHORT-TERM INCENTIVES AROUND THE WORLD AMERICAS

HR Atlas Asia Pacific

HR Management Terms

International Geographic Salary Differentials

Short-Term Incentives around the World

Total Employment Costs around the World

Talent All Access Portal

Subscription Services

Severance Policies — Asia Pacific

Global Parental Leave

HR Guide To Doing Business

© 2016 Mercer LLC.

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Worldwide Benefit & Employment Guidelines

Global Compensation Planning Report — October Update

TABLE OF CONTENTS

CORRESPONDENCE

2

Ghana

126

AMERICAS

180

Peru

238

DATA MINING & INSIGHTS

3

Guinea

129

Argentina

181

Puerto Rico

241

TABLE OF CONTENTS

4

244

INTRODUCTION

7

COMPENSATION STRATEGY

9

SUMMARY OF KEY FINDINGS

17

ECONOMIC TRENDS

39

SALARY INCREASE TRENDS

48

132

Bolivia

184

Trinidad and Tobago

Libya

135

Brazil

187

United States

247

Malawi

138

Canada

190

Uruguay

250

Mauritius

141

Chile

193

Venezuela

253

Morocco

144

Colombia

196

ASIA PACIFIC

256

Mozambique

147

Costa Rica

199

Australia

257

Namibia

150

Dominican Republic

202

Bangladesh

260

Nigeria

153

Ecuador

205

Cambodia

263

Rwanda

156

El Salvador

208

China–Beijing

266

Senegal

159

Guatemala

211

China–Changsha

269

South Africa

162

Honduras

214

China–Changzhou

272

Tanzania

165

Mexico

217

China–Chengdu

275

Tunisia

168

Mexico–Bajio

220

China–Chongqing

278

Uganda

171

Mexico–Monterrey-Saltillo

223

China–Dalian

281

Kenya

SHORT-TERM INCENTIVE TRENDS

89

AFRICA

98

Algeria

99

Angola

102

Botswana

105

Cameroon

108

Côte d'Ivoire

111

Democratic Republic of Congo

114

Zambia

174

Mexico–Reynosa

226

China–Guangdong

284

Egypt

117

Zimbabwe

177

Nicaragua

229

China–Hangzhou–Ningbo

287

232

China–Hefei/Wuhu

290

235

China–Nanjing

293

Ethiopia

120

Panama

Gabon

123

Paraguay

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Global Compensation Planning Report — October Update

TABLE OF CONTENTS

China–Qingdao

296

South Korea

353

Lithuania

408

MIDDLE EAST

447 448

China–Shanghai

299

Sri Lanka

356

Macedonia

411

Bahrain

China–Shenyang– Changchun

302

Taiwan

359

Moldova

414

Iran

451

China–Suzhou

305

Thailand

362

Montenegro

417

Iraq

454

China–Tianjin

308

Vietnam

365

Poland

420

Israel

457

China–Wuhan

311

CENTRAL AND EASTERN EUROPE

368

Romania

423

Jordan

460

Russia

426

Kuwait

463

China–Wuxi–Changzhou

314

Albania

369

Serbia

429

Lebanon

466

China–Xiamen–Fuzhou

317

Armenia

372

Slovakia

432

Oman

469

China–Xian

320

Azerbaijan

375

Slovenia

435

Qatar

472

Hong Kong

323

Belarus

378

Turkey

438

Saudi Arabia

475

India

326

Bosnia and Herzegovina

381

Ukraine

441

United Arab Emirates

478

Indonesia

329

Bulgaria

384

Uzbekistan

444

Yemen

481

Japan

332

Croatia

387

Malaysia

335

Czech Republic

390

Myanmar

338

Estonia

393

New Zealand

341

Georgia

396

Pakistan

344

Hungary

399

Philippines

347

Kazakhstan

402

Singapore

350

Latvia

405

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Global Compensation Planning Report — October Update

TABLE OF CONTENTS

WESTERN EUROPE

484

ABOUT THIS REPORT

543

Austria

485

METHODOLOGY

544

Belgium

488

GLOSSARY

548

Cyprus

491

ABOUT MERCER

550

Denmark

495

Finland

498

France

501

Germany

504

Greece

507

Ireland

510

Italy

513

Luxembourg

516

Malta

519

Netherlands

522

Norway

525

Portugal

528

Spain

531

Sweden

534

Switzerland

537

United Kingdom

540

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Global Compensation Planning Report — October Update

INTRODUCTION Mercer’s 2016 Global Compensation Planning Report — October edition includes analyses of economic trends and salary increase data by local Mercer consultants and experts. The report focuses on salary increases and economic trends, but also includes information on short-term incentives, attracting and retaining employees. To provide a more nuanced view of planned salary increases, the data show salary increases both with and without companies that reported salary freezes (including and excluding zeroes).

REPORT STRUCTURE The report includes the following sections: •• The Introduction section provides the report structure and a brief note on the topics covered in the report. •• The Compensation Strategy section provides recommended guidelines and considerations for effective compensation programmes. •• The Summary of key findings provides an overview on economic trends, salary increases, short-term incentives, mandatory salary increase schemes, and talent forecasts. •• The Economic trends section summarises economic measures, by percentage, for all countries represented in the report. •• The Salary increase trends section summarises compensation trends, by percentage, for all countries represented in the report. Data are presented both excluding and including zeroes. •• The section on Short-term incentive trends summarise the median target STI bonus as a percentage of base salary for all countries represented in the report. •• The individual country pages provide important insights into the economic climate of each country, as well as actions being taken and considered by employers around the world. —— Economic trends: This section shows the gross domestic product annual average change (%), inflation annual average change (%), and unemployment (%) for the three years covered. —— Base salary increases: This section includes summary tables showing the percentage of companies reporting zero salary increases (i.e., salary freezes), and salary increases for six employee levels (plus “all employees”) excluding zeroes and including zeroes.

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Global Compensation Planning Report — October Update

INTRODUCTION —— Mandatory salary increase schemes: This section describes any mandatory salary increase schemes that might apply in the country. —— Short-term incentives: Variable bonus: This section shows variable bonus by employee level. —— Attracting and retaining employees: This section lists the employees hardest to attract and the employees hardest to retain. •• The About this report section includes the report methodology and a glossary of terms and definitions.

EMPLOYEE LEVELS GCPR offers most of its compensation information across employee levels. The following are represented in this report: •• All employees •• Executive •• Management •• Professional — Sales •• Professional — Nonsales •• Para-professional — White collar •• Para-professional — Blue collar

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Global Compensation Planning Report — October Update

COMPENSATION STRATEGY Compensation is the single biggest expense for most companies in today’s knowledge-driven economy. Successful compensation programmes require efficient and effective planning and budgeting processes. In turn, these processes need well-defined and properly managed systems to support their operations. With an overall compensation management strategy as a framework, human resources (HR) can ensure that all these systems work harmoniously. Effective planning and budgeting allows a company to achieve the following: • Attract qualified talent. The programme must be adequate and competitive to interest the best talent available in the market. • Retain skilled employees. A well-designed programme ensures that pay remains adequate in changing market conditions to retain talent. • Motivate employees. A performance-driven compensation strategy keeps employees motivated and engaged. • Create value. The programme creates value through a good return on investment, along with an increase in company profits, market share, and shareholder returns. HR should not consider the planning process as a one-time activity, but — at least — as an annual process, supported by appropriate systems within the parameters of pay strategy. And throughout the process, HR should perform constant monitoring of both internal pay equity and external competitiveness.

BASE SALARY Base salary is compensation for the “job” an employee performs — that is, the individual’s actual competencies, responsibilities, or accountabilities — and considers the level of responsibility (for people or tasks), tenure with the company, and work experience. As base salary represents a fixed amount of total cash compensation (base salary plus bonus) for the employee, it also represents an ongoing liability for the organisation.

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Global Compensation Planning Report — October Update

COMPENSATION STRATEGY

Although every company has a distinct system of employee compensation, in general, one can broadly divide remuneration into five major components. 1. Annual base salary = Monthly base salary x number of months paid. 2. Annual guaranteed cash = Annual base salary + guaranteed allowances and legally required cash payments. 3. Annual total cash = Annual guaranteed cash + variable pay (short-term incentives, bonuses, commission). 4. Annual total cash + long-term incentives = Annual guaranteed cash + variable pay (short-term incentives, bonuses, commission) + long-term incentives (stock options, restricted stock, performance shares). 5. Annual total remuneration = Annual total cash + long-term incentives + benefits.

INTERNAL FACTORS INFLUENCING A COMPENSATION STRATEGY Beyond the job market, internal company-related factors also have an impact on remuneration. For example, such factors could include the firm’s overall (and divisional) business strategy, as well as its ownership, structure, and financial constraints. The existing pay programme, and what incumbents expect from it, also plays a part. If internal equity — which measures how a company values its jobs in relation to one another and whether people are paid according to their contributions — is not equitable, the result may be employees who are demotivated. The salary system should also reflect how management views the work that employees do. It should send the right message; for example, pay ranges that are narrow and have more grades allow for more frequent promotions and lead to a feeling of growth and progress for employees.

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Global Compensation Planning Report — October Update

COMPENSATION STRATEGY In addition, the pay plan should offer easy administration: Be simple to follow, maintain, and administer to ensure reasonably associated costs that use resources optimally and do not go beyond what the company can afford. Supporting the administrative process are other considerations: •• Is the policy centralised or decentralised? A centralised corporate policy tends to be rigid and similar across the company; on the other hand, a decentralised policy may give more flexibility or variability to different departments, depending on prevailing market rates. •• Is the plan’s objective(s) short-term or long-term? The answer depends on the company’s growth phase; a long-term orientation can result in a well-developed structure, whereas short-term orientation may better address volatility in talent availability.

EXTERNAL FACTORS INFLUENCING A COMPENSATION STRATEGY Market pricing determines competitive pay levels for specific jobs in a defined market. This approach helps HR assess the competitiveness of the company’s pay levels relative to others competing for the same skilled talent. It also provides a foundation for ensuring fair pay and developing appropriate salary structures. Conducted properly, market pricing enhances the company’s success by supporting its business strategy with a competitively paid and motivated workforce. Market pricing involves “benchmarking” the company’s pay and benefits against the market, followed by analysis of the results. The analysis: •• Categorises employees on the basis of their role within the company. Most large companies group employees by function, such as administration, finance and accounting, HR, information technology, operations, sales and marketing, and others. •• Converts the data into a workable approach that ensures its continuous ability to attract and retain employees. Each company requires its own approach to develop compensation administration programmes that are compatible with its culture and objectives. The company should also recognise and reward behaviours and skills that facilitate its success. Failure to identify appropriate competitive compensation can lead to costly turnover and loss of critical skills and intellectual capital, as well as failure to meet objectives. Industry trends also influence employees’ expectations of what they should receive, while tax treatment, company rules, and accounting standards can all impact the pay strategy. Responsiveness to the external economic environment is also important, such as demand and supply of various skills, as well as general market conditions (economic growth, unemployment, inflation, and so on). The company must respond to prevailing political, social, and legal environments, which can affect compensation — pay must conform to legal minimum wages and adhere to country-specific laws that mandate fair compensation.

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

COMPENSATION STRATEGY

STEPS IN DEVELOPING AN EFFECTIVE PROGRAMME Developing an effective rewards programme to meet HR’s accountabilities requires a number of essential steps: •• Assess the current programme through multiple perspectives (cost, employer, employee, market) and inventory all plans. •• Set the rewards philosophy and strategy to drive desired outcomes and business results. •• Design the programme with new components, adjustments to existing plans, and defined success and measurement processes. •• Implement the programme with a communication strategy to engage and inform employees and managers. •• Administer the programme through in-house staff and/or outsourcing, with an eye to enhancing the employee’s experience and managing costs.

SALARY ADMINISTRATION Once competitive compensation levels are identified, HR converts the data into a workable approach that ensures its continuous ability to attract and retain employees. Each company requires its own approach to develop compensation administration programmes that are compatible with its culture and objectives. It is important to align business strategy with human capital strategy, which then aligns to specific rewards programmes. In designing these rewards programmes, companies can use data from external sources to understand the competition and design attractive, cost-effective pay plans.

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

COMPENSATION STRATEGY COMPENSATION PLANNING PROCESS

MONTHS STEP 1 2 3 4 5 6 7 8 9 10 11

1

2

3

4

5

6

7

8

9

10

11

12

Update Project Planning Data Collection Setting Measurement Standards Internal Equity Measurement External Competitiveness Measurement Pay/Performance Measurement Business Alignment Measurement Capabilities measurement Formulate Recommendations Management Approval Implementation

Source: Mercer’s 2014–2015 Compensation Handbook.

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Global Compensation Planning Report — October Update

COMPENSATION STRATEGY

SALARY MANAGEMENT AND REVIEW PROCESS Poor compensation management and review may lead to costly “market premiums” that can inadvertently lead to average (or poor) performance, or dangerous “market discounts” resulting in unwanted turnover. It may also lead to misalignment of business goals with performance goals, and higher fixed costs by not tying pay to performance. Proper salary management establishes a meaningful and acceptable relationship between work and rewards. Employees’ work should help companies achieve their desired goals and results. These goals derive from the company’s overall business strategy, which supports the company’s mission and vision. If the process is designed and administered properly, a company’s compensation programme becomes an efficient, effective management tool for supporting the company’s overall business strategy. But, designing an effective compensation programmes is not a one-time affair. It involves constant review and refinement to keep up with changing business needs wherever the company operates. The salary review process sets an overall pay budget and determines individual salary increases within that budget, typically every year. The process involves a number of key — sometimes overlapping — phases: •• Planning a budget based on available or forecasted resources. •• Determining individual salary increases within the overall budget (considering corporate performance in the market and individual performance). •• Communicating the outcome of the exercise to employees. A salary review process starts with obtaining relevant data and reviewing whether a pay change is warranted. The budget is fixed, based on both actual availability of cash and forecast of growth and profits in the short-term. HR should understand the degree to which the business can vary compensation budgets if market conditions change. Establishing a close working relationship early with the finance function ensures that key financial metrics are correctly stated and eventual proposals will fall within the budgets set in the corporate business plan. HR should gather and assess performance data internally. Key measures should include quantitative measures, such as profit levels, and qualitative measures, such as customer satisfaction and product quality. Companies also should consider corporate governance and business ethics issues, as well as how results are achieved and absolute vs targeted performance.

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

COMPENSATION STRATEGY Whether a company has a relatively new or well-designed and tested salary programme, the company would do well to periodically audit the overall process and policies. An audit can help avoid potential legal and financial exposure by ensuring compliance with government regulations. The organisation should also monitor pay packages to avoid overpaying employees, creating inequitable situations, and maintaining a policy that no longer makes sense.

Source: Mercer’s 2014–2015 Compensation Handbook.

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

COMPENSATION STRATEGY

FACTORS DETERMINING INDIVIDUAL SALARY INCREASES Organisation performance Job level

Length of service

Individual performance

Position in salary range

Inflation

Market position/ competitiveness

Source: Mercer’s Total Remuneration Surveys, 2015.

Some compensation programmes consider a combination of factors when determining individual increases, such as individual employee performance and external market rates for comparable employees. A matrix combining factors such as ratings of employee performance and reference points extracted from external salary survey data help to determine individual salary increases. The distribution often also takes into account employees’ current salary position relative to the market or target pay rates; those below market receive proportionately more (assuming their performance reaches the required level). Whatever criterion is used to determine salary increases, there should be a system of required authorisations before any change is made.

SUMMARY Employers today acknowledge the increasingly important role of reward programmes to achieve their business goals through delivering the right amount of rewards, to the right people, at the right time, for the right reason. Companies have a broader comprehension of the “rewards” concept due to better understanding of their human capital strategy — the “people” side of business strategy. They recognise the importance of selection, development, deployment, motivation, management, and retention of people to carry out the business strategy. When properly designed and executed, a total rewards strategy — typically, the largest single expense — can be a powerful driver of business success. But, when designed and implemented badly, one of two outcomes is likely. At best, the company does not realise the optimal return from its investment in a total rewards package; at worst, the programme elements clash directly with each other, potentially undermining the success of the overall business strategy. That said, the company’s performance expectations must be clear — for instance, through use of examples of problematic employee behaviour; timely and continuous feedback; and expectations that are specific, measurable, time-bound, and realistic — to help employees understand what is expected and how these factors affect their compensation. © 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

SUMMARY OF KEY FINDINGS

SUMMARY OF KEY FINDINGS ECONOMIC FORECASTS Economic trends and forecasts provide direction to human resource professionals as they devise hiring schedules, workforce plans, attraction and retention programmes, and competitive levels of compensation and benefits. Accordingly, it is imperative that employers across different geographies understand the local economic outlook as they plan for future growth. In order to create sound HR programmes, companies must account for the external environment, including supply and demand for specialised skills and general market conditions. HR professionals must look at the following economic indicators: •• Gross domestic product (GDP). The output of goods and services produced by labour and property has five 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. •• Inflation. Referring to the increase in prices for a constant market basket of goods, inflation is the average annual change in the consumer price index, which may differ from end-of-year figures. A general increase in the money supply, without a corresponding increase in the amount of goods and services available, can lead to inflation. •• Unemployment. This figure represents the percentage of economically active persons that are wholly unemployed or temporarily laid off. Unemployment generally comprises all persons above a specified age who, during the reference period, were without but currently available and seeking work. Notably, national definitions of employment and unemployment differ from country to country. Given the volatility of markets, employers must be prepared to respond to economic downturn. Doing so requires HR managers to balance a company’s short-term health with long-term growth, ensuring that the firm can emerge from temporary recessions intact and ready to compete on the market. Any employer can endure these periods by reducing costs, but savvy firms will retain a skilled workforce by offering attractive pay, competitive benefit plans and innovative incentives to achieve long-term goals and sustainable success. Based on the results of Mercer surveys and analytics, the key projections on economic indicators for 2016 include the following regional trends.

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

SUMMARY OF KEY FINDINGS AFRICA •• The economy in South Africa, the largest in the region, continues to decelerate. The South African unemployment rate is expected to be 16 times higher than that in Guinea. AMERICAS •• Panama has been one of the fastest growing economies in Latin America over the past decade, with GDP expected to grow to 5.8%. •• Puerto Rico has the lowest rate of inflation (1.1%) in the region. •• Economic growth in Venezuela is expected to slow down further to -4.5%, causing unemployment to increase (21.4%) to the highest in the region. ASIA PACIFIC •• Forecasts suggest economic stagnation in Japan, the world’s largest economy. Japanese GDP is expected to grow by only 0.6%, and inflation (0.5%) will be the lowest in the region. •• Myanmar’s economy should continue its recent trend of expansion by growing 7.7% in 2016, but inflation is also high at 9.1%. •• Pakistan is expected to continue to be home to the highest unemployment rate (6.0%) in the region. CENTRAL AND EASTERN EUROPE •• Three-quarters of Central and Eastern European countries show double-digit unemployment, but Bosnia and Herzegovina will likely have the highest unemployment rate in the region at 25.2%. •• The economy in Belarus is expected to decline -0.5%, and inflation in the country (12.0%) will be the highest in the region. •• Uzbekistan is expected to be the regional growth leader at 6.0%.

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Global Compensation Planning Report — October Update

SUMMARY OF KEY FINDINGS MIDDLE EAST •• Although Iraq’s ongoing, turbulent geopolitical environment continues to contribute to unemployment (17.7%); it is expected to achieve some level of economic growth (0.5%). •• Qatar has the lowest unemployment rate (0.3%) in the region. WESTERN EUROPE •• Overall regional growth in Western Europe should hover around 2%, with Malta representing the regional growth leader at 3.4%. •• Despite Greece’s continuing debt crisis and strong austerity measures exacted by creditors, the Greek economy is expected to grow at 2.8%. However, austerity measures continue to affect the labour market, where unemployment (21.5%) remains high. •• Switzerland has the region’s lowest unemployment rate (3.4%), and is expected to have the lowest inflation rate (0%) in the region.

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

SUMMARY OF KEY FINDINGS ECONOMIC FORECASTS: HIGH AND LOW GROSS DOMESTIC PRODUCT, INFLATION, UNEMPLOYMENT, 2017 GDP CHANGE AFRICA

HIGH LOW

INFLATION RATE

Libya

13.7%

Angola

38.3%

South Africa

27.0%

Zimbabwe

-2.5%

Morocco

1.3%

Guinea

1.7%

GDP CHANGE AMERICAS

HIGH LOW

INFLATION RATE

HIGH LOW

5.8%

Venezuela

1660.1%

Venezuela

21.4%

Venezuela

-4.5%

Puerto Rico

1.1%

Guatemala

2.8%

INFLATION RATE

HIGH LOW

7.7%

Myanmar

9.1%

Pakistan

6.0%

Japan

0.6%

Japan

0.5%

Cambodia

0.6%

INFLATION RATE

HIGH LOW

6.0%

Belarus

12.0%

Bosnia and Herzegovina

25.2%

Belarus

-0.5%

Bosnia and Herzegovina

0.5%

Belarus

1.5%

INFLATION RATE

© 2016 Mercer LLC.

HIGH LOW

UNEMPLOYMENT RATE

Yemen

12.6%

Yemen

18.0%

Iraq

17.7%

Iraq

0.5%

Israel

0.8%

Qatar

0.3%

GDP CHANGE WESTERN EUROPE

UNEMPLOYMENT RATE

Uzbekistan

GDP CHANGE MIDDLE EAST

UNEMPLOYMENT RATE

Myanmar

GDP CHANGE CENTRAL AND EASTERN EUROPE

UNEMPLOYMENT RATE

Panama

GDP CHANGE ASIA PACIFIC

UNEMPLOYMENT RATE

INFLATION RATE

UNEMPLOYMENT RATE

Malta

3.4%

United Kingdom

2.5%

Greece

21.5%

Italy

0.9%

Switzerland

0.0%

Switzerland

3.4%

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Global Compensation Planning Report — October Update

SUMMARY OF KEY FINDINGS

SALARY INCREASE TRENDS, EXCLUDING AND INCLUDING ZEROES Mercer provides two types of salary data to ensure that readers of this report have access to the type of information that best suits their needs. •• Salary increase data “excluding zeroes” display the median salary increase, excluding those companies that reported a salary freeze. It is the best figure for those employers that want to review salary increases reported by companies that actually increased pay during the survey period, as it provides a clear perspective on competitive increase levels. •• Salary increase data “including zeroes” display the median salary increase, including those companies that reported a salary freeze. This figure offers an overview of general trends in the market, and is optimal for those companies that want to see a holistic overview of salary increases based on all competitors in the market. Forecasts suggest that salaries across the globe will rise by an average of 6.4%. When comparing trend data from a regional point of view, employers in the Americas indicate the highest percentage salary increases, while those in Western Europe report the lowest percentage salary increases across all career streams. See below for other notable regional trends and forecasts on salary increases. AFRICA •• Malawi has the highest forecasted salary increases for all the career streams in Africa. •• Salary increases across all career streams in Gabon are expected to be the lowest in the region. •• Less than 15% of African countries have a salary increase forecast in double digits. AMERICAS •• Salaries in Venezuela are expected to increase by 190.2% across all career streams in 2017. However, with inflation estimated at 1660.1%, the real salary increase will be much lower. •• Canada’s salary increase for all career streams is 2.6%, which is the lowest in the region. The sole exception is the increase for Para-Professional Blue Collar, where the increase rate of 2.5% is also the lowest in the region.

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

SUMMARY OF KEY FINDINGS ASIA PACIFIC •• Pakistani have the highest average (10.5%) salary increase for Professional – Nonsales and Para-professional level employees. •• Companies in Japan are forecasting the lowest increase in salary; an average of 2% across all career levels in 2017. CENTRAL AND EASTERN EUROPE •• Uzbekistan provides the highest salary increase for All Employees, Executive, Para Professional White and Blue collar and for the remaining career streams, while Belarus offers the highest salary increase for Management and Professional level employees. •• Bosnia and Herzegovina is at the bottom of the ranking for all the career streams and for all employees, and is tied with Slovenia for the lowest salary increase. MIDDLE EAST •• Iran ranks as the top country in the Middle East for salary increases, with the highest increase across all career streams. •• Israel has the lowest forecast increase in the region; 3.1% across all career streams. WESTERN EUROPE •• Norway is estimated to have the highest salary increase in the region (3.0%) in 2017 across all career streams. •• Cyprus ranks lowest across all career streams.

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

SUMMARY OF KEY FINDINGS SALARY INCREASE TRENDS EXCLUDING ZEROES, 2017 ALL EMPLOYEES AFRICA

HIGH LOW

EXECUTIVE

HIGH LOW

15.3%

Malawi

17.0%

Malawi

15.3%

Malawi

15.3%

Gabon

3.0%

Gabon

3.0%

Gabon

3.0%

Gabon

3.0%

EXECUTIVE

CENTRAL AND EASTERN EUROPE

HIGH LOW

Venezuela

190.2%

Venezuela

190.2%

Venezuela

190.2%

Canada

2.6%

Canada

2.6%

Canada

2.6%

Canada

2.6%

EXECUTIVE

WESTERN EUROPE

© 2016 Mercer LLC.

HIGH LOW

PROFESSIONAL — SALES

10.0%

Bangladesh

11.7%

Bangladesh

11.0%

Bangladesh

11.3%

Japan

2.0%

Japan

2.0%

Japan

2.0%

Japan

2.0%

EXECUTIVE

MANAGEMENT

PROFESSIONAL — SALES

Uzbekistan

11.4%

Uzbekistan

12.0%

Belarus

10.7%

Belarus

10.7%

Bosnia and Herzegovina, Slovenia

2.5%

Bosnia and Herzegovina

2.4%

Bosnia and Herzegovina

2.5%

Bosnia and Herzegovina

2.5%

EXECUTIVE

MANAGEMENT

PROFESSIONAL — SALES

Iran

20.2%

Iran

20.2%

Iran

20.2%

Iran

20.2%

Israel

3.1%

Israel

3.1%

Israel

3.1%

Israel

3.1%

ALL EMPLOYEES

HIGH LOW

MANAGEMENT

Myanmar, Pakistan, Srilanka, and Vietnam

ALL EMPLOYEES MIDDLE EAST

PROFESSIONAL — SALES

190.2%

ALL EMPLOYEES

HIGH LOW

MANAGEMENT

Venezuela

ALL EMPLOYEES ASIA PACIFIC

PROFESSIONAL — SALES

Malawi

ALL EMPLOYEES AMERICAS

MANAGEMENT

EXECUTIVE

MANAGEMENT

PROFESSIONAL — SALES

Norway

3.0%

Norway

3.0%

Norway

3.0%

Norway

3.0%

Cyprus

0.0% - 1.0%

Cyprus

0.0% - 1.0%

Cyprus

0.0% - 1.0%

Cyprus

0.0% - 1.0%

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Global Compensation Planning Report — October Update

SUMMARY OF KEY FINDINGS SALARY INCREASE TRENDS EXCLUDING ZEROES, 2017, CONTINUED PROFESSIONAL — NONSALES AFRICA

HIGH LOW

PARA-PROFESSIONAL — WHITE COLLAR

Malawi

15.3%

Malawi

17.0%

Malawi

17.0%

Gabon

3.0%

Gabon

3.0%

Gabon

3.0%

PROFESSIONAL — NONSALES AMERICAS

HIGH LOW

PARA-PROFESSIONAL — WHITE COLLAR

CENTRAL AND EASTERN EUROPE

HIGH LOW

190.2%

Venezuela

190.2%

Venezuela

190.2%

Canada

2.6%

Canada

2.6%

Canada

2.5%

PARA-PROFESSIONAL — WHITE COLLAR

11.0%

Pakistan

11.0%

Pakistan

11.0%

Japan

2.0%

Japan

2.0%

Japan

2.0%

PARA-PROFESSIONAL — WHITE COLLAR

HIGH LOW

11.5%

Uzbekistan

12.5%

Uzbekistan

15.0%

Bosnia and Herzegovina

2.5%

Bosnia and Herzegovina

2.5%

Bosnia and Herzegovina

2.4%

PARA-PROFESSIONAL — WHITE COLLAR

© 2016 Mercer LLC.

HIGH LOW

PARA-PROFESSIONAL — BLUE COLLAR

Iran

20.2%

Iran

20.2%

Iran

24.0%

Israel

3.1%

Israel

3.1%

Israel

3.1%

PROFESSIONAL — NONSALES WESTERN EUROPE

PARA-PROFESSIONAL — BLUE COLLAR

Belarus

PROFESSIONAL — NONSALES MIDDLE EAST

PARA-PROFESSIONAL — BLUE COLLAR

Pakistan

PROFESSIONAL — NONSALES

HIGH LOW

PARA-PROFESSIONAL — BLUE COLLAR

Venezuela

PROFESSIONAL — NONSALES ASIA PACIFIC

PARA-PROFESSIONAL — BLUE COLLAR

PARA-PROFESSIONAL — WHITE COLLAR

PARA-PROFESSIONAL — BLUE COLLAR

Norway

3.0%

Norway

3.0%

Norway

3.0%

Cyprus

0.0% - 1.0%

Cyprus

0.0% - 1.0%

Cyprus

0.0% - 1.0%

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Global Compensation Planning Report — October Update

SUMMARY OF KEY FINDINGS SALARY INCREASE TRENDS INCLUDING ZEROES, 2017 ALL EMPLOYEES AFRICA

HIGH LOW

EXECUTIVE

HIGH LOW

15.3%

Malawi

17.0%

Malawi

15.3%

Malawi

15.3%

Gabon

2.9%

Gabon

2.9%

Gabon

2.9%

Gabon

2.9%

EXECUTIVE

CENTRAL AND EASTERN EUROPE

HIGH LOW

Venezuela

190.2%

Venezuela

190.2%

Venezuela

190.2%

Canada

2.3%

Canada

2.4%

Canada

2.5%

Canada

2.6%

EXECUTIVE

WESTERN EUROPE

© 2016 Mercer LLC.

HIGH LOW

PROFESSIONAL — SALES

10.4%

Bangladesh, India

11.0%

India

11.0%

India

11%

Japan

2.0%

Japan

2.0%

Japan

2.0%

Japan

2.0%

EXECUTIVE

MANAGEMENT

PROFESSIONAL — SALES

Uzbekistan

11.3%

Uzbekistan

11.0%

Belarus, Ukraine, Uzbekistan

10.0%

Belarus, Ukraine, Uzbekistan

10.0%

Bosnia and Herzegovina, Montenegro

2.4%

Bosnia and Herzegovina, Montenegro

2.4%

Bosnia and Herzegovina, Montenegro

2.4%

Bosnia and Herzegovina, Montenegro

2.4%

EXECUTIVE

MANAGEMENT

PROFESSIONAL — SALES

Iran

20.1%

Iran

20.1%

Iran

20.1%

Iran

20.1%

Israel

3.1%

Israel

3.1%

Israel

3.1%

Israel

3.1%

ALL EMPLOYEES

HIGH LOW

MANAGEMENT

India

ALL EMPLOYEES MIDDLE EAST

PROFESSIONAL — SALES

190.2%

ALL EMPLOYEES

HIGH LOW

MANAGEMENT

Venezuela

ALL EMPLOYEES ASIA PACIFIC

PROFESSIONAL — SALES

Malawi

ALL EMPLOYEES AMERICAS

MANAGEMENT

EXECUTIVE

MANAGEMENT

PROFESSIONAL — SALES

Norway

3.0%

Norway

3.0%

Germany, Norway

2.9%

Norway

3.0%

Greece, Switzerland

1.8%

Greece, Switzerland

1.8%

Greece, Switzerland

1.8%

Greece, Switzerland

1.8%

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Global Compensation Planning Report — October Update

SUMMARY OF KEY FINDINGS SALARY INCREASE TRENDS INCLUDING ZEROES, 2017, CONTINUED PROFESSIONAL — NONSALES AFRICA

HIGH LOW

PARA-PROFESSIONAL — WHITE COLLAR

Malawi

15.3%

Malawi

17.0%

Malawi

17.0%

Gabon

2.9%

Gabon

2.9%

Gabon

2.9%

PROFESSIONAL — NONSALES AMERICAS

HIGH LOW

PARA-PROFESSIONAL — WHITE COLLAR

CENTRAL AND EASTERN EUROPE

HIGH LOW

190.2%

Venezuela

190.2%

Venezuela

190.2%

Canada

2.6%

Canada

2.5%

Canada

2.5%

PARA-PROFESSIONAL — WHITE COLLAR

11.0%

Pakistan

11.0%

Pakistan

11.0%

Japan

2.0%

Japan

2.0%

Japan

2.0%

PARA-PROFESSIONAL — WHITE COLLAR

WESTERN EUROPE

© 2016 Mercer LLC.

HIGH LOW

10.3%

Uzbekistan

12.5%

Uzbekistan

15.0%

Bosnia and Herzegovina, Montenegro

2.4%

Bosnia and Herzegovina, Montenegro

2.4%

Bosnia and Herzegovina, Montenegro

2.4%

PARA-PROFESSIONAL — WHITE COLLAR

PARA-PROFESSIONAL — BLUE COLLAR

Iran

20.1%

Iran

20.1%

Iran

22.1%

Israel

3.1%

Israel

3.1%

Israel

3.1%

PROFESSIONAL — NONSALES

HIGH LOW

PARA-PROFESSIONAL — BLUE COLLAR

Belarus

PROFESSIONAL — NONSALES MIDDLE EAST

PARA-PROFESSIONAL — BLUE COLLAR

Myanmar, India, Pakistan

PROFESSIONAL — NONSALES

HIGH LOW

PARA-PROFESSIONAL — BLUE COLLAR

Venezuela

PROFESSIONAL — NONSALES ASIA PACIFIC

PARA-PROFESSIONAL — BLUE COLLAR

PARA-PROFESSIONAL — WHITE COLLAR

PARA-PROFESSIONAL — BLUE COLLAR

Germany, Norway

2.9%

Norway

3.0%

Germany, Norway

2.9%

Greece, Switzerland

1.8%

Greece, Switzerland

1.8%

Greece, Switzerland

1.8%

27

Global Compensation Planning Report — October Update

SUMMARY OF KEY FINDINGS

SHORT-TERM INCENTIVES Short-term incentives (STIs) are a variable portion of total cash compensation and have always played a pivotal role in a developing a competitive compensation plan at the organisational level. The key objective in creating an effective incentive plan is to reward employees for achieving specific, measurable, agreed-upon performance goals, whether set for a group or an individual. The following are notable regional trends for STIs. AFRICA •• For executive and management positions, Rwanda has the highest target variable bonus rate in the region at 30% and 20%, respectively. •• For management and professionals, Senegal and Uganda have the lowest target variable bonus in the region. AMERICAS •• The highest target bonus in the region is for executives in the United States (39%), followed by management personnel in Uruguay (19%). •• For professional nonsales employees, there is a wide disparity in target variable bonus between different locations in Mexico. Mexico–Bajio has the highest overall target variable bonus (10.5%) in the region. whereas greater Mexico has the lowest (7.5%). ASIA PACIFIC •• China–Chengdu has the highest variable bonus target for executives at 26%, and Sri Lanka has the lowest target (17%) in region. •• For professional sales employees, Australia has the lowest target bonus (10%) and China–Changsha–Guangdong–Wuxi-Xiamen– Fuzhou has the highest target (20%).

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

SUMMARY OF KEY FINDINGS CENTRAL AND EASTERN EUROPE •• On average, Belarus, Czech Republic, and Slovakia have the highest variable bonus targets, and Moldova has the lowest at 10%. •• For executives, Montenegro has the highest target bonus (28%) and Bosnia and Herzegovina has the lowest (16%). •• For management, Moldova and Montenegro have the highest target (18%) and Georgia has the lowest (14%). MIDDLE EAST •• Executives in Iraq have the highest target bonus (30%), and those in Yemen have the lowest (15%). •• Iran has the highest target bonus (20%) for management personnel, and Yemen has the lowest (13%). WESTERN EUROPE •• Executives in Luxembourg and Switzerland have the highest target bonus (30%), and those in Cyprus have the lowest (10%). •• For management, Italy has the highest target bonus (20%), compared to Cyprus, which have the lowest target (10%).

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

SUMMARY OF KEY FINDINGS SHORT-TERM INCENTIVE TRENDS, MEDIAN TARGET INCENTIVE AS PERCENTAGE OF BASE SALARY

EXECUTIVE AFRICA

AMERICAS

HIGH LOW

HIGH LOW

MANAGEMENT

Rwanda

30.0%

Angola, Rwanda, Zimbabwe

20.0%

Guinea

26.0%

Malawi

15.0%

Senegal, Uganda

12.0%

Senegal

8.0%

EXECUTIVE

MANAGEMENT

© 2016 Mercer LLC.

HIGH LOW

PROFESSIONAL — SALES

United States

39.0%

Uruguay

19.0%

Mexico–Bajio

19.0%

Ecuador, Nicaragua

19.0%

Bolivia

11.0%

Mexico

0.0%

EXECUTIVE

ASIA PACIFIC

PROFESSIONAL — SALES

MANAGEMENT

PROFESSIONAL — SALES

China–Chengdu

25.8%

China–Changsha, China– Hangzhou–Ningbo, China– Hefei–Wuhu, China–Tianjin

20.0%

China–Changsha

23.0%

Sri Lanka

16.5%

Australia, Bangladesh, Hong Kong, India, Japan, Philippines, South Korea, New Zealand

15.0%

Australia and New Zealand

10.0%

30

Global Compensation Planning Report — October Update

SUMMARY OF KEY FINDINGS SHORT-TERM INCENTIVE TRENDS, MEDIAN TARGET INCENTIVE AS PERCENTAGE OF BASE SALARY, CONTINUED

CENTRAL AND EASTERN EUROPE

EXECUTIVE

HIGH LOW

MANAGEMENT

Montenegro

28.0%

Moldova, Montenegro

18.0%

Bulgaria, Czech Republic, Kazakhstan, Poland, Slovakia

20.0%

Bosnia and Herzegovina

16.0%

Georgia

14.0%

Estonia, Macedonia

14.0%

EXECUTIVE MIDDLE EAST

HIGH LOW

MANAGEMENT

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HIGH LOW

PROFESSIONAL — SALES

Iraq

30.0%

Iran

20.0%

Israel

25.0%

Yemen

15.0%

Yemen

13.0%

Yemen, Kuwait

10.0%

EXECUTIVE WESTERN EUROPE

PROFESSIONAL — SALES

MANAGEMENT

PROFESSIONAL — SALES

Luxembourg, Switzerland

30.0%

Italy

20.0%

Cyprus, France, Germany, Greece, Spain

15.0%

Cyprus

10.0%

Cyprus

10.0%

Austria, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden

10.0%

31

Global Compensation Planning Report — October Update

SUMMARY OF KEY FINDINGS SHORT-TERM INCENTIVE TRENDS, MEDIAN TARGET INCENTIVE AS PERCENTAGE OF BASE SALARY, CONTINUED

PROFESSIONAL — NONSALES AFRICA

HIGH LOW

PARA-PROFESSIONAL — WHITE COLLAR

Namibia

16.0%

Angola, Morocco, Senegal, South Africa

Senegal

8.0%

Namibia

PROFESSIONAL — NONSALES AMERICAS

HIGH LOW

© 2016 Mercer LLC.

HIGH LOW

16.0%

Angola

13.0%

8.0%

Cameroon, Egypt, Morocco, South Africa

8.0%

PARA-PROFESSIONAL — WHITE COLLAR

PARA-PROFESSIONAL — BLUE COLLAR

Mexico–Bajio

10.5%

Chile, Mexico–Bajio, Venezuela

10.0%

Panama

12.0%

Mexico

7.5%

United States

5.0%

Mexico–Bajio

0.0%

PROFESSIONAL — NONSALES ASIA PACIFIC

PARA-PROFESSIONAL — BLUE COLLAR

PARA-PROFESSIONAL — WHITE COLLAR

PARA-PROFESSIONAL — BLUE COLLAR

China–Changsha

16.7%

Cambodia

16.9%

Cambodia, China–Nanjing, China–Wuxi, Thailand

27.0%

Australia, Bangladesh, Japan, New Zealand

10.0%

Australia

7.0%

New Zealand

5.0%

32

Global Compensation Planning Report — October Update

SUMMARY OF KEY FINDINGS SHORT-TERM INCENTIVE TRENDS, MEDIAN TARGET INCENTIVE AS PERCENTAGE OF BASE SALARY, CONTINUED

PROFESSIONAL — NONSALES CENTRAL AND EASTERN EUROPE

HIGH LOW

PARA-PROFESSIONAL — WHITE COLLAR

Montenegro

15.0%

Belarus

15.0%

Belarus

40.0%

Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Croatia, Estonia, Georgia, Hungary, Kazakhstan, Lithuania, Moldova, Poland, Romania, Russia, Serbia, Slovenia, Turkey, Uzbekistan,

10.0%

Bosnia and Herzegovina

7.0%

Turkey

8.0%

PROFESSIONAL — NONSALES MIDDLE EAST

HIGH LOW

PARA-PROFESSIONAL — WHITE COLLAR

Bahrain, Iran, Iraq, Lebanon, 15.0% Qatar, Saudi Arabia United Arab Emirates, Israel

10.0%

PROFESSIONAL — NONSALES WESTERN EUROPE

© 2016 Mercer LLC.

HIGH LOW

PARA-PROFESSIONAL — BLUE COLLAR

PARA-PROFESSIONAL — BLUE COLLAR

Saudi Arabia

14.0%

Bahrain, Saudi Arabia

15.0%

Israel

8.0%

Oman

6.0%

PARA-PROFESSIONAL — WHITE COLLAR

PARA-PROFESSIONAL — BLUE COLLAR

Malta

14.0%

Malta

16.0%

Greece, Ireland, Norway, Sweden

6.0%

Denmark, Finland, France, Netherlands, Norway, Sweden

8.0%

Austria, Belgium, Denmark, Finland, Germany, Netherlands

5.0%

Austria, Belgium, Denmark

4.0%

33

Global Compensation Planning Report — October Update

SUMMARY OF KEY FINDINGS

MANDATORY PAY SCHEMES Some states impose mandatory salary increases to ensure that workers’ compensation increases in order to keep up with inflation, consumer price indices, and other metrics. Most countries that have some type of mandatory salary increase indicate that it is related to collective bargaining agreements. Other common ways of devising a mandatory salary increase include: •• Linking it to price indexes or inflation, as seen in Belgium, Bolivia, Cyprus, and Russia. •• Establishing a fixed annual increase for length of service, such as in Bulgaria. •• Limiting the mandatory salary increase for minimum legal salary, as in Colombia and Ecuador. •• Fixing the percentage increase for each scale of the minimum wage, like in the Dominican Republic. •• Providing for an additional base salary to all workers in the months of July and December, as is the case in Peru. •• Applying a minimum salary increase to public-sector employees only, similar to the practice in Romania.

© 2016 Mercer LLC.

34

Global Compensation Planning Report — October Update

SUMMARY OF KEY FINDINGS COUNTRIES WITH MANDATORY PAY INCREASE SCHEMES, BY REGION AFRICA

MAURITIUS

There is a government-imposed mandatory increase that is linked to inflation, but it is not based solely on cost of living adjustment (COLA). These increases are determined at government’s discretion and may vary from COLA. At times, these increases are provided as a flat rate and in some cases as a percentage of basic salary (ABS). These increases are provided at the end of the financial year, which is changed from January end to June end. However, the change in the financial year has not been communicated for the mandatory increase.

AMERICAS ARGENTINA

There are no mandatory increases, but Argentina has many trade unions that negotiate the salary increases for their unionized employees.

BOLIVIA

Since 2008, the government defined an annual mandatory salary increase approximating the inflation rate. Public and private employees' salaries and the minimum monthly wages are increased annually.

BRAZIL

Brazil has no automatic price index that applies to pay increases, but employers must follow any union agreements to which they are subject.

COLOMBIA

Mandatory pay increase is only for minimum legal salary and minimum integral salary.

DOMINICAN REPUBLIC

The current resolution issued by the National Salaries Committee (CNS) 1/2015, decided that all companies should increase their salaries by 14% in each scale of the minimum wage.

ECUADOR

Ecuador's mandatory pay increase policy is only for minimum legal salary.

PERU

Peru has no mandatory pay increase scheme, but, in July and December, companies deliver the amount of an additional month's salary to all workers.

URUGUAY

Uruguay has salary committees formed by representatives of the government, employees, and employers. The bargaining occurs twice a year, in January and July, for almost all industries represented by different councils. These increases mix an inflation forecasted quote with the sector expected growth and a correction of the previous forecast versus reality.

VENEZUELA

March: 20% increase (Bs.11.578) food coupon (Bs.13.275) May: 30% increase (Bs.15.051) food coupon (Bs.18.585) September: 50% increase (Bs.22.576,76) food coupon (Bs.42.480) Actual

ASIA SOUTH KOREA

There is a system called “Hobong system,” which is an automatic annual increase based on years of service. However, most multinational companies and Korean conglomerates in Korea adopt job-value-based systems or mixed systems (job-value and role-level based). Although some local companies still employ the Hobong system, multinational firms, Korean corporations and larger local firms have adopted job-value-based salary increase policies.

VIETNAM

Vietnam has a regional minimum wage structure, whereby companies must pay their lowest-level employees at or above the regional minimum wage. Some regions in Vietnam have not adopted a mandatory pay increase policy, but companies are beholden to any salary increase terms contained in collective bargaining agreements.

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

SUMMARY OF KEY FINDINGS COUNTRIES WITH MANDATORY PAY INCREASE SCHEMES, BY REGION, CONTINUED CENTRAL AND EASTERN EUROPE BULGARIA

There is a mandatory salary increase of 0.6% for each year of service. Some companies have collective bargaining, which mandates an even higher figure.

ROMANIA

The Polish government determines a minimum monthly salary for each year. The minimum monthly salary was RON900 in July 2014 and RON1,050 in July 2015. As of May 1, 2016, the minimum salary is RON1,250. The minimum wage does not include fixed incomes, such as holiday allowance, Christmas/Easter allowance, or other specific allowances for public sector employees. The private sector is not directly affected by the situation in the public sector; private companies make their own decisions in particular cases according to internal requirements and the general economic environment.

RUSSIA

Salary increases in Russia are in accordance with the Article 134 of the Labour Code of the Russian Federation (“Providing the increase of the real content of wages level”). Any increase in the real content of a wage level must account for pay indexation due to the increase of consumer prices for goods and services. State authorities, local governments and state and municipal institutions shall index wages according to the labour legislation and other legal acts containing labour law norms. In other organisations, indexation is according to the collective agreement, contracts, or the local acts of the company.

TURKEY

Turkey does not have a mandatory pay increase policy. There could be mandatory pay increases for unionised employees due to collective agreement requirements.

MIDDLE EAST IRAN

Iran has a mandatory pay increase of 14% in 2016.

ISRAEL

Israel does not have a mandatory pay increase policy. Labour unions and employers have agreed to a series of incremental increases to the minimum wage. This would result in a minimum wage for full employment of ILR5,300 per month on December 1, 2017.

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

SUMMARY OF KEY FINDINGS COUNTRIES WITH MANDATORY PAY INCREASE SCHEMES, BY REGION, CONTINUED WESTERN EUROPE AUSTRIA

As collective agreements have a binding force of statute in Austria, pay increases determined in the negotiation process are mandatory. Collective bargaining in Austria is conducted at the sectoral level and is differentiated into a large number of separate agreements (for example, for blue- and white-collar workers, or for industrial and craft production). However, it is coordinated across the economy.

BELGIUM

Collective labour agreements adjust salaries in line with price inflation. Indexation links to the Health Index, defined as consumer price index excluding fuel, alcohol, and tobacco. Timing of adjustments varies by industry sector. Cost-of-living adjustment (COLA) is offered twice a year – in January (for the previous year) and in July. It has effectively been frozen through the end of 2016 for the duration of the Troika sponsored plan. The international lenders would like to see these changes to be permanent but that is not possible. As an update the social partners have just started a social dialogue under the guidance of the Ministry of Labour, Welfare and Social Insurance to formulate a new system for COLA

CYPRUS

Companies and organisations with collective agreements in force have: – Automatic pay-scale increases. – Agreed pay increases across the board (at sector and/or industry and/or company levels, depending on the collective agreement in force). As an update the Government has decided that as of the 01/01/2017 the Automatic pay-scale increases will be reinstated for all public and semi-public employees (utilities, municipalities etc) This will have a positive effect on other employees as well.

GERMANY

The are no country wide mandatory increases in Germany. Some companies are bound by collective agreements which foresee salary increases for employees at the para-professional and professional levels.

ITALY

Italy’s national collective agreements (CCNLs) are usually negotiated every three years, for both establishing minimum salaries for each employee group and level and other terms and conditions. The CCNL increase cannot be absorbed unless this point is clearly stated in the hiring contract. Some companies absorb CCNL from annual merit increases, but in such cases it has to be stated in writing and the total increase amount has to be greater than the CCNL increase.

LUXEMBOURG

Luxembourg has not amended its salary index since October 2013, but will likely do so in late 2016 or early 2017.

MALTA

In 2016, the minimum wage has increased from EUR166.26 to EUR168.01 per week. The Budget for 2017 will be out later in October 2016 and this data might need updating.

NETHERLANDS

Dutch employers are not subject to general mandatory increases, but 49% of them do have collective bargaining agreements affecting base salaries. Such agreements may affect all employees or only some groups, such as blue-collar workers.

SPAIN

Collective bargaining agreements per industry sector usually establish a minimum pay increase indexed to inflation, but not all companies apply them even within sectors with a specific agreement.

SWEDEN

Sweden does not have a mandatory pay increase policy. Collective agreements largely dictate salary increases.

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

SUMMARY OF KEY FINDINGS

TALENT FORECASTS FOR 2017 This section lists the employees hardest to attract and the employees hardest to retain. Across all regions, engineering, marketing, finance, sales, manufacturing, and project engineering skills are both hard to attract and retain — continuing a trend that challenges employers in need of those capabilities and expertise. HARD TO ATTRACT SKILLS

HARD TO RETAIN SKILLS

AFRICA

Marketing and Engineering.

Project Engineering, Sales, Sales and Marketing and Finance.

AMERICAS

Information Technology, Top Management, Quality, Management and Sales.

Engineering, Quality, Finances, Top Management, Project Engineering and Quality.

ASIA PACIFIC

Sales, Marketing, Engineering, Manufacturing, Supply and Logistics, Human Resource and Finance.

Engineering, Manufacturing, Product/Brand Management, Research and Development, Marketing, Finance, Manufacturing/ Production Assembly, Sales and Marketing.

CENTRAL AND EASTERN EUROPE

Marketing, Engineering, Sales and Marketing, IT Analysis and Design, Finance and Industry Specific.

Marketing, Sales and Marketing, Manufacturing, IT Analysis and Design, Finance, Information Technology and Industry Specific.

MIDDLE EAST

Project Engineering, Finance and Engineering.

Sales, Industry Specific, Human Resources and Repair and Maintenance.

WESTERN EUROPE

Engineering, Finance and Accounting, IT Development and Support.

Finance, Industry Specific, Health Industry Professionals, Repair and Maintenance, Manufacturing and Engineering.

Source: Total Remuneration Survey Policies and Practice Report.

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

ECONOMIC TRENDS

ECONOMIC TRENDS

Data for 2015

Actual/estimated

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS, AFRICA GDP CHANGE (%)

AFRICA

INFLATION RATE (%)

UNEMPLOYMENT RATE (%)

2015

2016

2017

2015

2016

2017

2015

2016

2017

Algeria

3.9

3.6

2.9

4.8

5.9

4.8

11.2

9.9

10.4

Angola

3.0

0.0

1.5

10.3

33.7

38.3

7.6

7.5

7.5

Botswana

-0.3

3.1

4.0

3.0

3.2

3.5

18.6

19.0

19.3

Cameroon

5.8

4.8

4.2

2.8

2.2

2.2

4.6

4.7

4.8

Côte d’Ivoire

8.5

8.0

8.0

1.2

1.0

1.5

9.5

9.5

9.4

Democratic Republic of Congo

6.9

3.9

4.2

1.0

1.7

2.7

3.8

3.8

3.8

Egypt

4.2

3.8

4.0

11.0

10.2

18.2

12.9

12.7

12.3

Ethiopia

10.2

6.5

7.5

10.1

7.7

8.2

5.5

5.6

5.6

Gabon

4.0

3.2

4.5

0.1

2.5

2.5

20.5

20.5

20.3

Ghana

3.9

3.3

7.4

17.2

17.0

10.0

6.3

6.4

6.4

Guinea

0.1

3.8

4.4

8.2

8.2

8.1

1.8

1.8

1.7

Kenya

5.6

6.0

6.1

6.6

6.2

5.5

9.2

9.2

9.1

Libya

-6.4

-3.3

13.7

14.1

14.2

12.5

20.6

20.6

20.6

Malawi

3.0

2.7

4.5

21.9

19.8

13.9

6.7

6.8

6.8

Mauritius

3.5

3.5

3.9

1.3

1.5

2.1

7.9

7.5

7.2

Morocco

4.5

1.8

4.8

1.5

1.3

1.3

9.7

10.2

10.1

Mozambique

6.6

4.5

5.5

2.4

16.7

15.5

22.3

22.1

22.1

Namibia

5.3

4.2

5.3

3.4

6.6

6.0

25.5

24.7

24.2

Nigeria

2.7

-1.7

0.6

9.0

15.4

17.1

5.8

6.3

6.6

Rwanda

6.9

6.0

6.0

2.5

5.3

4.9

2.4

2.2

2.2

Senegal

6.5

6.6

6.8

0.1

1.0

1.8

9.3

9.1

8.9

South Africa

1.3

0.1

0.8

4.6

6.4

6.0

25.4

26.3

27.0

Tanzania

7.0

7.2

7.2

5.6

5.2

5.0

3.2

3.3

3.3

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

© 2016 Mercer LLC.

40

Global Compensation Planning Report — October Update

ECONOMIC TRENDS

Data for 2015

Actual/estimated

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS, AFRICA, CONTINUED GDP CHANGE (%)

AFRICA

INFLATION RATE (%)

UNEMPLOYMENT RATE (%)

2015

2016

2017

2015

2016

2017

2015

2016

2017

Tunisia

0.8

1.5

2.8

4.9

3.7

3.9

15.0

14.0

13.0

Uganda

4.8

4.9

5.5

5.5

5.5

5.1

3.6

3.5

3.4

Zambia

3.0

3.0

4.0

10.1

19.1

9.1

10.7

11.2

11.5

Zimbabwe

1.1

-0.3

-2.5

-2.4

-1.6

4.6

9.3

8.5

8.0

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

© 2016 Mercer LLC.

41

Global Compensation Planning Report — October Update

ECONOMIC TRENDS

Data for 2015

Actual/estimated

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS, AMERICAS GDP CHANGE (%)

AMERICAS

INFLATION RATE (%)

UNEMPLOYMENT RATE (%)

2015

2016

2017

2015

2016

2017

2015

2016

2017

Argentina

2.4

-1.3

3.0

28.1

40.1

21.1

7.8

8.6

8.1

Bolivia

4.8

3.7

3.9

4.1

3.9

5.1

4.0

4.0

4.0

Brazil

-3.8

-3.3

0.5

9.0

9.0

5.4

8.5

11.2

11.5

Canada

1.1

1.2

1.9

1.1

1.6

2.1

6.9

7.0

7.1

Chile

2.3

1.7

2.0

4.3

4.0

3.0

6.2

7.0

7.6

Colombia

3.1

2.2

2.7

5.0

7.6

4.1

8.9

9.7

9.6

Costa Rica

3.7

4.3

4.3

0.8

0.7

2.6

9.2

8.2

8.1

Dominican Republic

7.0

5.9

4.5

0.8

2.3

4.0

5.9

5.2

5.3

Ecuador

0.3

-2.3

-2.7

4.0

2.4

1.1

4.8

6.1

6.9

El Salvador

2.5

2.4

2.4

-0.7

1.0

1.5

5.3

5.3

5.3

Guatemala

3.9

4.4

4.2

3.1

3.2

3.9

2.9

2.8

2.8

Honduras

3.6

3.6

3.7

3.2

3.1

4.1

4.0

4.0

4.0

Mexico

2.5

2.1

2.3

2.7

2.8

3.3

4.4

4.1

3.9

Nicaragua

4.9

4.5

4.3

4.0

6.2

7.3

6.8

6.9

7.3

Panama

5.8

5.2

5.8

0.1

0.7

1.5

5.1

5.1

5.1

Paraguay

3.1

3.5

3.6

3.1

4.1

4.1

6.1

5.9

5.5

Peru

3.3

3.7

4.1

3.5

3.6

2.5

6.0

6.0

6.0

Puerto Rico

-0.05

-1.8

-1.4

-0.8

-0.2

1.1

12.0

11.9

11.9

Trinidad and Tobago

-2.1

-2.8

2.3

4.7

4.8

5.3

3.6

4.0

4.0

United States

2.6

1.6

2.2

0.1

1.2

2.3

5.3

4.9

4.8

Uruguay

1.0

0.1

1.2

8.7

10.2

8.7

7.5

7.9

8.5

-6.2

-10.0

-4.5

121.7

475.8

1660.1

7.4

18.1

21.4

Venezuela

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

© 2016 Mercer LLC.

42

Global Compensation Planning Report — October Update

ECONOMIC TRENDS

Data for 2015

Actual/estimated

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS, ASIA PACIFIC GDP CHANGE (%)

ASIA PACIFIC

INFLATION RATE (%)

UNEMPLOYMENT RATE (%)

2015

2016

2017

2015

2016

2017

2015

2016

2017

Australia

2.4

2.9

2.7

1.5

1.3

2.1

6.1

5.7

5.7

Bangladesh

6.8

6.9

6.9

6.4

6.7

6.9

4.4

4.4

4.4

Cambodia

7.0

7.0

6.9

1.2

3.1

2.7

0.5

0.6

0.6

China

6.9

6.6

6.2

1.4

2.1

2.3

4.1

4.1

4.1

Hong Kong

2.4

1.4

1.9

3.0

2.5

2.6

3.3

3.2

3.1

India

7.6

7.6

7.6

4.9

5.5

5.2

3.5

3.4

3.4

Indonesia

4.8

4.9

5.3

6.4

3.7

4.2

6.2

5.6

5.7

Japan

0.5

0.5

0.6

0.8

-0.2

0.5

3.4

3.2

3.2

Malaysia

5.0

4.3

4.6

2.1

2.1

3.0

3.2

3.2

3.2

Myanmar

7.0

8.1

7.7

11.4

9.8

9.1

4.0

4.0

4.0

New Zealand

3.0

2.8

2.7

0.3

0.7

1.6

5.4

5.3

5.5

Pakistan

4.0

4.7

5.0

4.5

2.9

5.2

5.9

6.0

6.0

Philippines

5.9

6.4

6.7

1.4

2.0

3.4

6.3

5.9

5.7

Singapore

2.0

1.7

2.2

-0.5

-0.3

1.1

1.9

2.0

2.0

South Korea

2.6

2.7

3.0

0.7

1.0

1.9

3.6

3.6

3.3

Sri Lanka

4.8

5.0

5.0

0.9

4.1

5.3

4.0

4.0

4.0

Taiwan

0.6

1.0

1.7

-0.3

1.1

1.1

3.8

3.9

4.0

Thailand

2.8

3.2

3.3

-0.9

0.3

1.6

0.9

0.8

0.7

Vietnam

6.7

6.1

6.2

0.6

2.0

3.7

2.4

2.4

2.4

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

© 2016 Mercer LLC.

43

Global Compensation Planning Report — October Update

ECONOMIC TRENDS

Data for 2015

Actual/estimated

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS, CENTRAL AND EASTERN EUROPE GDP CHANGE (%)

CENTRAL AND EASTERN EUROPE

INFLATION RATE (%)

UNEMPLOYMENT RATE (%)

2015

2016

2017

2015

2016

2017

2015

2016

2017

Albania

2.8

3.4

3.7

1.9

1.1

2.2

17.1

16.9

16.6

Armenia

3.0

3.2

3.4

3.7

-0.5

2.5

17.7

17.9

18.0

Azerbaijan

1.1

-2.4

1.4

4.0

10.2

8.5

6.0

6.0

6.0

Belarus

-3.9

-3.0

-0.5

13.5

12.7

12.0

1.5

1.5

1.5

Bosnia and Herzegovina

3.2

3.0

3.2

-1.0

-0.7

0.5

27.7

25.4

25.2

Bulgaria

3.0

3.0

2.8

-1.1

-1.6

0.6

9.2

8.2

7.1

Croatia

1.6

1.9

2.1

-0.5

-1.0

0.8

16.9

16.4

15.9

Czech Republic

4.5

2.5

2.7

0.3

0.6

1.9

5.0

4.1

4.1

Estonia

1.1

1.5

2.5

0.1

0.5

1.4

6.1

5.6

5.5

Georgia

2.8

3.4

5.2

4.0

2.6

3.6

12.3

11.8

11.7

Hungary

2.9

2.0

2.5

-0.1

0.4

1.9

6.8

6.0

5.8

Kazakhstan

1.2

-0.8

0.6

6.5

13.1

9.3

5.0

5.0

5.0

Latvia

2.7

2.5

3.4

0.2

0.2

1.7

9.9

9.4

9.2

Lithuania

1.6

2.6

3.0

-0.7

0.5

1.2

9.1

7.8

7.6

Macedonia

3.7

2.2

3.5

-0.2

0.1

0.8

26.1

25.4

24.8

Moldova

-0.5

2.0

3.0

9.6

6.8

4.4

4.9

4.7

4.5

Montenegro

3.2

5.1

3.6

1.6

0.5

1.3

18.2

17.7

17.5

Poland

3.7

3.1

3.4

-0.9

-0.6

1.1

7.5

6.3

6.2

Romania

3.8

4.0

3.8

-0.6

-1.5

1.7

6.8

6.4

6.2

Russia

-3.7

-0.8

1.1

15.5

7.2

5.0

5.6

5.8

5.9

Serbia

0.7

2.5

2.8

1.4

1.3

3.2

18.5

18.6

18.7

Slovakia

3.6

3.4

3.3

-0.3

-0.2

1.1

11.5

9.9

8.8

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

© 2016 Mercer LLC.

44

Global Compensation Planning Report — October Update

ECONOMIC TRENDS

Data for 2015

Actual/estimated

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS, CENTRAL AND EASTERN EUROPE, CONTINUED GDP CHANGE (%)

CENTRAL AND EASTERN EUROPE

INFLATION RATE (%)

UNEMPLOYMENT RATE (%)

2015

2016

2017

2015

2016

2017

2015

2016

2017

Slovenia

2.3

2.3

1.8

-0.5

-0.3

1.0

9.0

8.2

7.9

Turkey

4.0

3.3

3.0

7.7

8.4

8.2

10.3

10.2

10.2

Ukraine

-9.9

1.5

2.5

48.7

15.1

11.0

9.1

9.0

8.7

Uzbekistan

8.0

6.0

6.0

8.5

8.4

9.6

10.1

10.1

10.0

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

© 2016 Mercer LLC.

45

Global Compensation Planning Report — October Update

ECONOMIC TRENDS

Data for 2015

Actual/estimated

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS, MIDDLE EAST GDP CHANGE (%)

MIDDLE EAST

INFLATION RATE (%)

UNEMPLOYMENT RATE (%)

2015

2016

2017

2015

2016

2017

2015

2016

2017

Bahrain

2.9

2.1

1.8

1.8

3.6

3.0

1.2

1.3

1.3

Iran

0.4

4.5

4.1

11.9

7.4

7.2

10.8

11.3

11.2

Iraq

-2.4

10.3

0.5

1.4

2.0

2.0

16.9

17.6

17.7

Israel

2.5

2.8

3.0

-0.6

-0.6

0.8

5.2

5.2

5.2

Jordan

2.4

2.8

3.3

-0.9

-0.5

2.3

12.8

13.2

13.4

Kuwait

1.1

2.5

2.6

3.2

3.4

3.8

2.1

2.1

2.1

Lebanon

1.0

1.0

2.0

-3.7

-0.7

2.0

7.1

7.3

7.4

Oman

3.3

1.8

2.6

0.1

1.1

3.1

6.3

6.4

6.4

Qatar

3.7

2.6

3.4

1.8

3.0

3.1

0.2

0.3

0.3

Saudi Arabia

3.5

1.2

2.0

2.2

4.0

2.0

5.8

5.7

5.7

United Arab Emirates

4.0

2.3

2.5

4.1

3.6

3.1

3.7

3.6

3.6

-28.1

-4.2

12.6

39.4

5.0

18.0

15.9

16.4

15.9

Yemen

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

© 2016 Mercer LLC.

46

Global Compensation Planning Report — October Update

ECONOMIC TRENDS

Data for 2015

Actual/estimated

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS, WESTERN EUROPE GDP CHANGE (%)

WESTERN EUROPE WESTERN EUROPE

INFLATION RATE (%)

UNEMPLOYMENT RATE (%)

2015

2016

2017

2015

2016

2017

2015

2016

2017

Austria

0.9

1.4

1.2

0.8

0.9

1.5

5.7

6.2

6.4

Belgium

1.4

1.4

1.4

0.6

2.1

1.6

8.5

8.4

8.3

Cyprus

1.5

2.8

2.2

-1.5

-1.0

0.5

14.9

13.0

11.6

Denmark

1.0

1.0

1.4

0.5

0.4

1.1

6.2

6.0

5.8

Finland

0.2

0.9

1.1

-0.2

0.4

1.2

9.3

9.1

8.9

France

1.3

1.3

1.3

0.1

0.3

1.0

10.4

9.8

9.6

Germany

1.5

1.7

1.4

0.1

0.4

1.5

4.6

4.3

4.5

Greece

-0.2

0.1

2.8

-1.1

-0.1

0.6

25.0

23.3

21.5

Ireland

26.3

4.9

3.2

-0.03

0.3

1.2

9.5

8.3

7.7

Italy

0.8

0.8

0.9

0.1

-0.1

0.5

11.9

11.5

11.2

Luxembourg

4.8

3.5

3.1

0.1

0.2

1.0

6.9

6.4

6.3

Malta

6.2

4.1

3.4

1.2

1.2

1.5

5.4

4.8

4.9

Netherlands

2.0

1.7

1.6

0.2

0.1

0.9

6.9

6.7

6.5

Norway

1.6

0.8

1.2

2.2

3.2

2.3

4.4

4.7

4.5

Portugal

1.5

1.0

1.1

0.5

0.7

1.1

12.4

11.2

10.7

Spain

3.2

3.1

2.2

-0.5

-0.3

1.0

22.1

19.4

18.0

Sweden

4.2

3.6

2.6

0.7

1.1

1.4

7.4

6.9

6.7

Switzerland

0.8

1.0

1.3

-1.1

-0.4

0.02

3.2

3.5

3.4

United Kingdom

2.2

1.8

1.1

0.1

0.7

2.5

5.4

5.0

5.2

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

© 2016 Mercer LLC.

47

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, AFRICA Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. ALL EMPLOYEES (%) EXCLUDING ZEROES

AFRICA

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

Algeria

6.9

6.9

6.9

6.7

6.7

6.7

Angola

7.8

8.1

8.5

6.3

7.3

8.1

Botswana

7.0

6.0

6.6

7.0

5.9

5.9

Cameroon

4.3

4.9

4.5

4.0

4.9

4.5

Côte d'Ivoire

4.7

4.5

4.0

4.7

4.1

4.0

Democratic Republic of Congo

4.0

4.4

4.9

4.0

4.4

4.4

Egypt

10.0

10.0

10.0

10.0

10.0

10.0

Ethiopia

15.0

10.9

10.9

15.0

10.9

10.9

Gabon

4.2

3.3

3.0

1.8

2.6

2.9

Ghana

10.4

12.9

11.6

10.2

11.1

11.6

Guinea

9.5

9.5

8.2

9.5

7.5

8.2

Kenya

8.0

8.0

7.6

7.9

7.9

7.5

Libya**

5.0

5.3

–

5.0

5.0

–

Malawi

12.5

15.5

15.3

12.5

15.5

15.3

Mauritius

5.5

5.0

5.0

5.5

5.0

5.0

Morocco

4.6

4.2

4.4

4.5

4.2

4.4

Mozambique

5.0

6.5

6.8

5.0

6.3

6.5

Namibia*

6.8

7.5

–

6.7

7.3

–

Nigeria

9.8

9.5

9.7

9.6

9.5

9.7

Rwanda

6.0

7.0

–

6.0

7.0

–

Senegal

4.9

4.8

4.1

4.9

4.5

4.1

Note: Salary increase data presented refers to an average of all industries and generally represents median values. *IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated content will be available to download on November 11.

See country pages for details.

**IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated content will be available to download on November 30.

© 2016 Mercer LLC.

49

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, AFRICA, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. ALL EMPLOYEES (%) EXCLUDING ZEROES

AFRICA

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

South Africa

7.0

6.8

7.0

7.0

6.6

6.9

Tanzania

6.5

8.0

8.0

6.3

7.8

7.0

Tunisia

6.4

6.3

6.3

6.3

6.3

6.3

Uganda

6.4

8.5

7.5

5.9

8.0

7.3

Zambia

7.2

7.5

7.9

7.2

7.5

7.8

Zimbabwe

5.0

4.8

4.5

5.0

4.8

4.5

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

© 2016 Mercer LLC.

50

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, AFRICA, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. EXECUTIVES AFRICA

(%) EXCLUDING ZEROES 2015

2016

Algeria

6.9

Angola

7.5

Botswana

MANAGEMENT (%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

2017

2015

2016

2017

2015

2016

6.7

6.7

6.7

6.5

6.5

6.9

8.1

8.5

4.7

7.8

8.1

7.8

6.0

6.0

7.0

6.0

5.9

6.5

Cameroon

4.5

4.9

4.5

4.3

4.9

Côte d'Ivoire

4.8

4.4

4.0

4.8

Democratic Republic of Congo

4.3

4.0

4.7

Egypt

10.0

10.0

Ethiopia

10.0

Gabon

(%) INCLUDING ZEROES

2017

2015

2016

2017

6.9

6.7

6.5

6.9

6.5

8.0

8.3

6.3

7.8

8.1

6.0

6.0

6.0

6.0

5.9

6.0

4.5

4.3

4.9

4.5

4.0

4.9

4.5

4.1

4.0

4.8

4.3

4.0

4.8

4.0

4.0

4.3

4.0

4.1

5.0

4.2

4.9

5.0

4.2

4.4

10.0

10.0

10.0

10.0

10.0

10.0

10.0

10.0

10.0

10.0

10.4

10.3

10.0

10.0

10.0

15.0

11.0

10.8

15.0

11.0

10.8

–

3.3

3.0

0.0

2.6

2.9

4.2

3.3

3.0

1.8

2.6

2.9

Ghana

10.0

13.0

11.8

8.9

11.1

11.6

10.7

12.9

12.0

10.4

11.1

12.0

Guinea

5.0

7.5

8.0

5.0

1.2

7.0

5.0

9.0

8.2

5.0

7.5

8.2

Kenya

8.0

7.9

7.6

8.0

7.8

7.5

8.0

7.9

7.6

8.0

7.8

7.5

Libya**

5.0

5.3

–

5.0

5.0

–

5.0

5.3

–

5.0

5.0

–

Malawi

13.4

17.0

17.0

13.4

17.0

17.0

12.5

15.5

15.3

12.5

15.5

15.3

Mauritius

5.6

5.0

5.0

5.6

5.0

5.0

5.7

5.0

5.0

5.7

5.0

5.0

Morocco

4.5

4.2

4.5

4.5

4.2

4.5

4.5

4.2

4.5

4.4

4.2

4.5

Mozambique

5.0

6.3

6.5

5.0

6.0

6.5

5.0

6.5

6.8

5.0

6.3

6.5

Namibia*

6.7

7.5

–

6.5

7.3

–

6.8

7.5

–

6.7

7.3

–

Nigeria

9.7

9.5

9.7

9.3

9.5

9.6

9.9

9.5

9.7

9.6

9.5

9.7

Rwanda

6.0

6.0

–

6.0

6.0

–

6.0

6.5

–

6.0

6.5

–

Senegal

4.9

4.5

4.0

4.6

4.2

4.0

4.9

4.8

4.1

4.9

4.5

4.1

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

See country pages for details.

*IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated content will be available to download on November 11. **IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated content will be available to download on November 30.

© 2016 Mercer LLC.

51

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, AFRICA, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. EXECUTIVES AFRICA

(%) EXCLUDING ZEROES

MANAGEMENT (%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

South Africa

7.0

6.5

7.0

7.0

6.5

6.9

7.0

6.5

7.0

7.0

6.5

6.9

Tanzania

6.5

8.0

8.0

6.3

7.2

7.0

6.6

8.0

8.0

6.5

7.3

7.0

Tunisia

6.2

6.3

6.3

6.0

6.3

6.3

6.4

6.3

6.3

6.3

6.3

6.3

Uganda

6.9

8.0

7.1

6.4

7.8

7.1

6.4

8.0

7.1

5.9

8.0

7.1

Zambia

7.2

7.8

8.0

7.0

7.5

7.9

7.2

7.5

7.9

7.2

7.5

7.8

Zimbabwe

3.0

3.9

3.8

3.0

3.9

3.8

3.8

4.8

4.5

3.8

4.8

4.5

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

© 2016 Mercer LLC.

52

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, AFRICA, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. PROFESSIONAL — SALES AFRICA

(%) EXCLUDING ZEROES

PROFESSIONAL — NONSALES

(%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

Algeria

6.9

6.9

6.9

6.5

6.7

6.7

6.9

Angola

7.5

8.0

8.3

4.7

7.8

8.1

7.8

Botswana

6.0

6.0

6.0

6.0

5.9

6.0

6.0

Cameroon

4.5

4.9

4.5

4.3

4.9

4.5

Côte d'Ivoire

4.8

4.5

4.0

4.8

4.1

Democratic Republic of Congo

5.0

5.0

4.9

5.0

Egypt

10.0

10.0

10.0

Ethiopia

13.8

10.9

Gabon

4.2

Ghana

2016

(%) INCLUDING ZEROES

2017

2015

2016

2017

6.7

6.7

6.5

6.5

6.5

8.0

8.3

6.3

7.8

8.1

6.0

6.0

6.0

5.9

6.0

4.3

4.9

4.5

4.0

4.9

4.5

4.0

4.8

4.5

4.0

4.8

4.1

4.0

5.0

4.4

5.0

5.0

4.9

5.0

5.0

4.4

10.0

10.0

10.0

10.0

10.0

10.0

10.0

10.0

10.0

10.9

13.8

10.9

10.9

13.8

10.9

10.9

13.8

10.9

10.9

3.3

3.0

1.8

2.6

2.9

4.2

3.3

3.0

1.8

2.6

2.9

10.7

12.9

12.0

10.4

11.1

12.0

10.7

12.9

11.8

10.4

11.1

11.8

Guinea

10.2

7.5

8.0

10.2

4.2

8.0

10.2

9.0

8.2

10.2

6.0

8.2

Kenya

7.8

8.0

7.6

7.7

7.9

7.5

8.0

8.0

7.6

8.0

7.9

7.5

Libya**

5.0

5.3

–

5.0

5.0

–

5.0

5.3

–

5.0

5.0

–

Malawi

13.0

15.5

15.3

13.0

15.5

15.3

12.5

15.5

15.3

12.5

15.5

15.3

Mauritius

5.7

5.0

5.0

5.7

5.0

5.0

5.7

5.0

5.0

5.7

5.0

5.0

Morocco

4.5

4.2

4.5

4.5

4.2

4.5

4.5

4.2

4.4

4.5

4.2

4.4

Mozambique

5.0

6.3

6.5

5.0

6.0

6.5

5.0

6.5

6.8

5.0

6.3

6.5

Namibia*

6.8

7.5

–

6.7

7.3

–

6.8

7.5

–

6.7

7.3

–

Nigeria

9.8

9.5

9.7

9.6

9.5

9.6

9.9

9.5

10.0

9.6

9.5

9.7

Rwanda

6.0

6.5

–

6.0

6.5

–

6.0

6.5

–

6.0

6.5

–

Senegal

4.9

4.8

4.1

4.9

4.5

4.1

4.9

4.8

4.1

4.9

4.5

4.1

Note: Salary increase data presented refers to an average of all industries and generally represents median values. *IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated content will be available to download on November 11.

See country pages for details.

**IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated content will be available to download on November 30.

© 2016 Mercer LLC.

53

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, AFRICA, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. PROFESSIONAL — SALES AFRICA

(%) EXCLUDING ZEROES

PROFESSIONAL — NONSALES

(%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

South Africa

7.0

6.6

7.0

7.0

6.5

6.9

7.0

6.6

7.0

7.0

6.5

6.9

Tanzania

6.5

8.0

8.0

6.3

7.4

7.0

6.5

8.0

8.0

6.3

8.0

7.0

Tunisia

6.3

6.3

6.3

6.2

6.3

6.3

6.3

6.3

6.3

6.2

6.3

6.3

Uganda

6.4

8.0

7.1

5.9

8.0

7.1

6.4

8.0

7.1

5.9

8.0

7.1

Zambia

7.4

7.5

7.9

7.4

7.5

7.8

7.4

7.5

7.9

7.4

7.5

7.8

Zimbabwe

2.9

3.9

3.8

2.9

3.9

3.8

2.9

4.8

4.5

2.9

4.8

4.5

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

© 2016 Mercer LLC.

54

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, AFRICA, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. PARA-PROFESSIONAL — WHITE COLLAR AFRICA

(%) EXCLUDING ZEROES 2015

2016

Algeria

6.9

Angola

7.5

Botswana

PARA-PROFESSIONAL — BLUE COLLAR

(%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2017

2015

2016

2017

2015

2016

2017

2015

2016

6.7

6.7

6.5

6.5

6.5

6.9

6.5

6.9

6.5

6.4

6.7

8.1

8.5

4.7

8.0

8.2

7.3

8.1

8.5

3.0

8.0

8.2

6.5

6.3

6.0

6.5

6.0

6.0

6.5

6.3

6.0

6.5

6.0

6.0

Cameroon

4.5

4.9

4.5

4.3

4.9

4.5

4.3

4.9

4.5

4.0

4.9

4.5

Côte d'Ivoire

4.1

4.5

4.0

4.1

4.1

4.0

4.1

4.3

4.0

4.1

4.0

4.0

Democratic Republic of Congo

4.8

4.4

4.9

4.8

4.4

4.4

4.8

4.4

4.9

4.8

4.4

4.4

Egypt

10.0

10.0

10.0

10.0

10.0

10.0

10.0

10.0

10.0

10.0

10.0

10.0

Ethiopia

15.0

10.9

10.8

15.0

10.9

10.8

15.0

11.3

10.8

15.0

11.3

10.8

Gabon

4.2

3.3

3.0

1.8

2.6

2.9

4.5

3.3

3.0

2.0

2.6

2.9

Ghana

10.7

11.9

12.0

10.4

11.0

12.0

10.4

11.9

12.0

10.2

11.0

12.0

Guinea

9.5

9.0

8.2

9.5

6.0

8.2

9.5

9.0

8.2

9.5

6.0

8.2

Kenya

8.0

8.0

7.6

8.0

7.9

7.5

8.0

7.8

7.5

7.9

7.7

7.4

Libya**

5.0

5.3

–

5.0

5.0

–

5.0

5.3

–

5.0

5.0

–

Malawi

12.5

17.0

17.0

12.5

17.0

17.0

13.0

17.0

17.0

13.0

17.0

17.0

Mauritius

5.7

5.0

5.0

5.7

5.0

5.0

5.7

5.0

5.0

5.7

5.0

5.0

Morocco

4.6

4.2

4.5

4.5

4.2

4.5

4.9

4.2

4.5

4.8

4.2

4.5

Mozambique

5.0

6.3

6.5

5.0

6.0

6.5

5.0

6.3

6.5

5.0

6.0

6.5

Namibia*

6.8

7.5

–

6.7

7.3

–

6.7

7.5

–

6.5

7.3

–

Nigeria

9.8

9.5

10.0

9.6

9.5

9.7

9.6

9.5

9.9

9.0

9.5

9.7

Rwanda

6.0

6.5

–

6.0

6.5

–

6.0

6.5

–

6.0

6.5

–

Senegal

4.9

4.8

4.1

4.9

4.5

4.1

5.0

4.5

4.0

5.0

4.2

4.0

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

2017

See country pages for details.

*IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated content will be available to download on November 11. **IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated content will be available to download on November 30.

© 2016 Mercer LLC.

55

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, AFRICA, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. PARA-PROFESSIONAL — WHITE COLLAR AFRICA

(%) EXCLUDING ZEROES

PARA-PROFESSIONAL — BLUE COLLAR

(%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

South Africa

7.0

6.6

7.0

7.0

6.5

6.9

7.0

6.6

7.0

7.0

6.5

6.9

Tanzania

6.5

8.0

8.0

6.3

7.8

7.0

6.3

8.0

8.0

6.0

7.8

7.0

Tunisia

6.4

6.3

6.3

6.3

6.3

6.3

6.3

6.2

6.3

6.2

6.2

6.3

Uganda

6.4

8.0

7.1

5.9

8.0

7.1

6.9

8.0

7.1

6.4

8.0

7.1

Zambia

7.2

7.8

8.0

7.2

7.5

7.9

7.4

7.8

8.0

7.4

7.5

7.9

Zimbabwe

2.8

3.9

3.8

2.8

3.9

3.8

2.8

3.0

3.0

2.8

3.0

3.0

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

© 2016 Mercer LLC.

56

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, AMERICAS Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. ALL EMPLOYEES (%) EXCLUDING ZEROES

AMERICAS

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

Argentina

32.0

33.0

30.0

32.0

33.0

30.0

Bolivia

8.5

6.0

6.5

8.5

6.0

6.5

Brazil

8.3

8.9

9.5

8.3

8.9

9.5

Canada

2.8

2.5

2.6

2.4

2.1

2.3

Chile

5.5

5.0

5.1

5.5

5.0

5.1

Colombia

4.7

6.0*

7.4

4.7

6.0*

7.4

Costa Rica

5.7

4.7

4.7

5.7

4.7

4.7

Dominican Republic

6.0

5.3

5.8

6.0

5.3

5.8

Ecuador

5.2

3.5

3.2

5.2

3.5

3.2

El Salvador

4.0

3.7

4.0

4.0

3.7

4.0

Guatemala

5.2

5.0

4.7

5.2

5.0

4.7

Honduras

5.4

5.0

5.1

5.4

5.0

5.1

Mexico

4.5

4.2

4.5

4.5

-

4.4

Mexico–Bajio

5.0

4.7

4.5

4.7

4.7

4.5

Mexico–Monterrey Saltillo

4.2

4.7

4.5

4.2

4.7

4.5

Mexico–Reynosa

4.0

4.0

4.3

4.0

4.0

4.3

Nicaragua

6.0

5.3

5.8

6.0

5.3

5.8

Panama

5.0

5.0

4.5

5.0

5.0

4.5

Paraguay

7.0

7.0

7.0

7.0

7.0

7.0

Peru

4.1

5.0

5.1

4.1

5.0

5.1

Puerto Rico

3.3

2.8

3.9

3.3

2.8

3.9

Trinidad and Tobago

4.8

5.3

5.0

4.8

5.3

5.0

Note: Salary increase data presented refers to an average of all industries and generally represents median values. *Denotes that even though the salary increase reflected is 6% for general market, the increase for minimum wages is 7% according to official sources.

© 2016 Mercer LLC.

57

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Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, AMERICAS, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. ALL EMPLOYEES AMERICAS

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

United States

2.9

2.9

2.9

2.8

2.8

2.9

Uruguay

11.0

10.0

10.2

11.0

10.0

10.2

Venezuela

88.9

167.1

190.2

88.9

167.1

190.2

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

© 2016 Mercer LLC.

58

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, AMERICAS, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. EXECUTIVES AMERICAS

(%) EXCLUDING ZEROES

MANAGEMENT (%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

Argentina

32.0

33.0

30.0

32.0

33.0

30.0

32.0

33.0

30.0

32.0

33.0

30.0

Bolivia

8.5

6.0

6.5

8.5

6.0

6.5

8.5

6.0

6.5

8.5

6.0

6.5

Brazil

8.3

8.9

9.5

8.3

8.9

9.5

8.3

8.9

9.5

8.3

8.9

9.5

Canada

2.8

2.7

2.6

2.3

2.2

2.4

2.8

2.6

2.6

2.5

2.4

2.5

Chile

5.5

5.0

5.1

5.5

5.0

5.1

5.5

5.0

5.1

5.5

5.0

5.1

Colombia

4.7

6.0*

7.4

4.7

6.0*

7.4

4.7

6.0*

7.4

4.7

6.0*

7.4

Costa Rica

5.7

4.7

4.7

5.7

4.7

4.7

5.7

4.7

4.7

5.7

4.7

4.7

Dominican Republic

6.0

5.3

5.8

6.0

5.3

5.8

6.0

5.3

5.8

6.0

5.3

5.8

Ecuador

5.2

3.5

3.2

5.2

3.5

3.2

5.2

3.5

3.2

5.2

3.5

3.2

El Salvador

4.0

3.7

4.0

4.0

3.7

4.0

4.0

3.7

4.0

4.0

3.7

4.0

Guatemala

5.2

5.0

4.7

5.2

5.0

4.7

5.2

5.0

4.7

5.2

5.0

4.7

Honduras

5.4

5.0

5.1

5.4

5.0

5.1

5.4

5.0

5.1

5.4

5.0

5.1

Mexico

4.5

4.4

4.5

4.5

-

-

4.5

4.5

4.5

4.5

4.5

4.5

Mexico–Bajio

4.7

5.0

4.5

4.3

5.0

4.5

5.0

4.8

4.3

5.0

4.8

4.3

Mexico–Monterrey Saltillo

4.0

4.7

4.5

4.0

4.7

4.5

4.0

4.7

4.5

4.0

4.7

4.5

Mexico–Reynosa

4.0

4.0

4.3

4.0

3.5

4.0

4.0

3.5

4.0

4.0

3.5

4.0

Nicaragua

6.0

5.3

5.8

6.0

5.3

5.8

6.0

5.3

5.8

6.0

5.3

5.8

Panama

5.0

5.0

4.5

5.0

5.0

4.5

5.0

5.0

4.5

5.0

5.0

4.5

Paraguay

7.0

7.0

7.0

7.0

7.0

7.0

7.0

7.0

7.0

7.0

7.0

7.0

Peru

4.1

5.0

5.1

4.1

5.0

5.1

4.1

5.0

5.1

4.1

5.0

5.1

Puerto Rico

3.3

2.8

3.9

3.3

2.8

3.9

3.3

2.8

3.9

3.3

2.8

3.9

Trinidad and Tobago

4.8

5.3

5.0

4.8

5.3

5.0

4.8

5.3

5.0

4.8

5.3

5.0

Note: Salary increase data presented refers to an average of all industries and generally represents median values. *Denotes that even though the salary increase reflected is 6% for general market, the increase for minimum wages is 7% according to official sources.

© 2016 Mercer LLC.

59

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, AMERICAS, CONTINUED EXECUTIVES AMERICAS

(%) EXCLUDING ZEROES

MANAGEMENT (%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

United States

3.0

3.0

3.0

2.9

2.7

2.9

2.9

2.9

2.9

2.8

2.7

2.9

Uruguay

11.0

10.0

10.2

11.0

10.0

10.2

11.0

10.0

10.2

11.0

10.0

10.2

Venezuela

88.9

167.1

190.2

88.9

167.1

190.2

88.9

167.1

190.2

88.9

167.1

190.2

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

© 2016 Mercer LLC.

60

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, AMERICAS, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. PROFESSIONAL — SALES AMERICAS

(%) EXCLUDING ZEROES

PROFESSIONAL — NONSALES

(%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

Argentina

32.0

33.0

30.0

32.0

33.0

30.0

32.0

33.0

30.0

32.0

33.0

30.0

Bolivia

8.5

6.0

6.5

8.5

6.0

6.5

8.5

6.0

6.5

8.5

6.0

6.5

Brazil

8.3

8.9

9.5

8.3

8.9

9.5

8.3

8.9

9.5

8.3

8.9

9.5

Canada

2.8

2.5

2.6

2.5

2.4

2.6

2.8

2.6

2.6

2.5

2.5

2.6

Chile

5.5

5.0

5.1

5.5

5.0

5.1

5.5

5.0

5.1

5.5

5.0

5.1

Colombia

4.7

6.0*

7.4

4.7

6.0*

7.4

4.7

6.0*

7.4

4.7

6.0*

7.4

Costa Rica

5.7

4.7

4.7

5.7

4.7

4.7

5.7

4.7

4.7

5.7

4.7

4.7

Dominican Republic

6.0

5.3

5.8

6.0

5.3

5.8

6.0

5.3

5.8

6.0

5.3

5.8

Ecuador

5.2

3.5

3.2

5.2

3.5

3.2

5.2

3.5

3.2

5.2

3.5

3.2

El Salvador

4.0

3.7

4.0

4.0

3.7

4.0

4.0

3.7

4.0

4.0

3.7

4.0

Guatemala

5.2

5.0

4.7

5.2

5.0

4.7

5.2

5.0

4.7

5.2

5.0

4.7

Honduras

5.4

5.0

5.1

5.4

5.0

5.1

5.4

5.0

5.1

5.4

5.0

5.1

Mexico

4.4

4.0

4.5

-

4.0

4.5

4.5

4.2

4.5

4.5

-

4.5

Mexico–Bajio

4.4

3.8

4.0

-

3.8

4.0

5.0

4.5

4.3

5.0

4.5

4.3

Mexico–Monterrey Saltillo

4.0

4.3

4.4

4.0

4.0

4.0

4.2

4.7

4.8

4.0

4.7

4.7

Mexico–Reynosa

4.3

4.0

4.3

4.0

4.0

4.0

4.0

4.0

4.0

4.0

4.0

4.0

Nicaragua

6.0

5.3

5.8

6.0

5.3

5.8

6.0

5.3

5.8

6.0

5.3

5.8

Panama

5.0

5.0

4.5

5.0

5.0

4.5

5.0

5.0

4.5

5.0

5.0

4.5

Paraguay

7.0

7.0

7.0

7.0

7.0

7.0

7.0

7.0

7.0

7.0

7.0

7.0

Peru

4.1

5.0

5.1

4.1

5.0

5.1

4.1

5.0

5.1

4.1

5.0

5.1

Puerto Rico

3.3

2.8

3.9

3.3

2.8

3.9

3.3

2.8

3.9

3.3

2.8

3.9

Trinidad and Tobago

4.8

5.3

5.0

4.8

5.3

5.0

4.8

5.3

5.0

4.8

5.3

5.0

Note: Salary increase data presented refers to an average of all industries and generally represents median values. *Denotes that even though the salary increase reflected is 6% for general market, the increase for minimum wages is 7% according to official sources.

© 2016 Mercer LLC.

61

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, AMERICAS, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. PROFESSIONAL — SALES AMERICAS

(%) EXCLUDING ZEROES

PROFESSIONAL — NONSALES

(%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

United States

2.9

2.9

2.9

2.8

2.7

2.8

2.9

2.9

2.9

2.8

2.7

2.9

Uruguay

11.0

10.0

10.2

11.0

10.0

10.2

11.0

10.0

10.2

11.0

10.0

10.2

Venezuela

88.9

167.1

190.2

88.9

167.1

190.2

88.9

167.1

190.2

88.9

167.1

190.2

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

© 2016 Mercer LLC.

62

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, AMERICAS, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. PARA-PROFESSIONAL — WHITE COLLAR AMERICAS

(%) EXCLUDING ZEROES

PARA-PROFESSIONAL — BLUE COLLAR

(%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

Argentina

32.0

33.0

30.0

32.0

33.0

30.0

32.0

33.0

30.0

32.0

33.0

30.0

Bolivia

8.5

6.0

6.5

8.5

6.0

6.5

8.5

6.0

6.5

8.5

6.0

6.5

Brazil

8.3

8.9

9.5

8.3

8.9

9.5

8.3

8.9

9.5

8.3

8.9

9.5

Canada

2.7

2.5

2.6

2.5

2.4

2.5

2.7

2.4

2.5

2.2

2.4

2.5

Chile

5.5

5.0

5.1

5.5

5.0

5.1

5.5

5.0

5.1

5.5

5.0

5.1

Colombia

4.7

6.0*

7.4

4.7

6.0*

7.4

4.7

6.0*

7.4

4.7

6.0*

7.4

Costa Rica

5.7

4.7

4.7

5.7

4.7

4.7

5.7

4.7

4.7

5.7

4.7

4.7

Dominican Republic

6.0

5.3

5.8

6.0

5.3

5.8

6.0

5.3

5.8

6.0

5.3

5.8

Ecuador

5.2

3.5

3.2

5.2

3.5

3.2

5.2

3.5

3.2

5.2

3.5

3.2

El Salvador

4.0

3.7

4.0

4.0

3.7

4.0

4.0

3.7

4.0

4.0

3.7

4.0

Guatemala

5.2

5.0

4.7

5.2

5.0

4.7

5.2

5.0

4.7

5.2

5.0

4.7

Honduras

5.4

5.0

5.1

5.4

5.0

5.1

5.4

5.0

5.1

5.4

5.0

5.1

Mexico

4.5

4.1

4.5

4.5

-

4.5

4.5

4.3

4.5

4.5

4.3

4.5

Mexico–Bajio

5.0

4.5

4.0

5.0

4.5

4.0

4.9

4.6

4.6

4.8

4.6

4.6

Mexico–Monterrey Saltillo

4.0

4.6

4.7

4.0

4.6

4.7

4.2

4.4

4.5

4.2

4.4

4.5

Mexico–Reynosa

4.0

3.5

4.0

4.0

3.5

4.0

4.0

4.0

4.0

4.0

4.0

4.0

Nicaragua

6.0

5.3

5.8

6.0

5.3

5.8

6.0

5.3

5.8

6.0

5.3

5.8

Panama

5.0

5.0

4.5

5.0

5.0

4.5

5.0

5.0

4.5

5.0

5.0

4.5

Paraguay

7.0

7.0

7.0

7.0

7.0

7.0

7.0

7.0

7.0

7.0

7.0

7.0

Peru

4.1

5.0

5.1

4.1

5.0

5.1

4.1

5.0

5.1

4.1

5.0

5.1

Puerto Rico

3.3

2.8

3.9

3.3

2.8

3.9

3.3

2.8

3.9

3.3

2.8

3.9

Trinidad and Tobago

4.8

5.3

5.0

4.8

5.3

5.0

4.8

5.3

5.0

4.8

5.3

5.0

Note: Salary increase data presented refers to an average of all industries and generally represents median values. * Denotes that even though the salary increase reflected is 6% for general market, the increase for minimum wages is 7% according to official sources.

© 2016 Mercer LLC.

63

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, AMERICAS, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. PARA-PROFESSIONAL — WHITE COLLAR AMERICAS

(%) EXCLUDING ZEROES

PARA-PROFESSIONAL — BLUE COLLAR

(%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

United States

2.9

2.9

2.9

2.8

2.7

2.9

2.8

2.8

2.9

2.7

2.6

2.8

Uruguay

11.0

10.0

10.2

11.0

10.0

10.2

11.0

10.0

10.2

11.0

10.0

10.2

Venezuela

88.9

167.1

190.2

88.9

167.1

190.2

88.9

167.1

190.2

88.9

167.1

190.2

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

© 2016 Mercer LLC.

64

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, ASIA PACIFIC Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. ALL EMPLOYEES (%) EXCLUDING ZEROES

ASIA PACIFIC

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

Australia

3.0

3.0

3.0

3.0

3.0

3.0

Bangladesh

10.0

9.0

10.0

10.0

8.3

10.0

Cambodia

6.5

6.9

7.0

6.5

6.9

7.0

China–Beijing

7.0

6.0

6.5

7.0

6.0

6.5

China–Changsha

7.0

6.2

6.8

7.0

6.2

6.8

China–Changzhou

7.0

6.4

6.5

7.0

6.0

6.5

China–Chengdu

7.0

6.0

6.0

7.0

5.9

–

China–Chongqing

7.0

6.0

7.0

–

–

–

China–Dalian

6.9

6.0

6.5

6.9

6.0

6.5

China–Guangdong

7.0

6.0

6.5

7.0

6.0

6.5

China–Hangzhou-Ningbo

7.0

6.2

6.5

–

–

–

China–Hefei-Wuhu

7.0

6.3

6.7

7.0

6.3

6.7

China–Nanjing

7.0

6.0

6.5

7.0

6.0

6.5

China–Qingdao

7.0

6.0

6.0

7.0

6.0

6.0

China–Shanghai

7.0

6.0

6.5

7.0

6.0

6.5

China–Shenyang-Changchun

7.0

6.0

6.3

7.0

6.0

6.0

China–Suzhou

7.0

6.5

6.5

7.0

6.5

6.5

China–Tianjin

7.0

6.0

6.0

7.0

6.0

6.0

China–Wuhan

7.0

6.0

6.5

7.0

6.0

6.5

China–Wuxi

7.0

6.0

7.0

7.0

6.0

7.0

China–Xiamen-Fuzhou

7.0

6.0

7.0

7.0

6.0

7.0

China–Xian

7.0

6.2

6.5

7.0

6.0

6.5

Hong Kong

4.2

4.0

4.0

4.2

4.0

4.0

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

© 2016 Mercer LLC.

65

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, ASIA PACIFIC, CONTINUED Figures inAFRICA blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. ALL EMPLOYEES (%) EXCLUDING ZEROES

ASIA PACIFIC

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

India*

10.0

10.5

–

10.0

10.5

10.4

Indonesia

9.0

8.9

9.1

9.0

8.8

9.0

Japan

2.0

2.0

2.0

2.0

2.0

2.0

Malaysia

5.1

5.3

5.5

5.0

5.3

5.5

Myanmar

8.3

9.5

10.0

8.0

9.5

9.9

New Zealand

2.9

3.0

3.0

2.9

3.0

3.0

Pakistan

10.0

10.0

10.0

10.0

10.0

10.0

Philippines

6.0

6.0

6.5

6.0

6.0

6.4

Singapore

4.0

4.0

4.0

4.0

4.0

4.0

South Korea

4.5

4.5

5.0

4.5

4.5

5.0

Sri Lanka

9.3

9.0

10.0

9.3

9.0

10.0

Taiwan

3.6

3.5

3.8

3.5

3.5

3.7

Thailand

5.3

5.2

5.5

5.3

5.1

5.5

Vietnam

9.2

9.0

10.0

9.0

9.0

10.0

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

See country pages for details. *IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated missing content will be available to download on November 11.

© 2016 Mercer LLC.

66

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, ASIA PACIFIC, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. EXECUTIVES ASIA PACIFIC

(%) EXCLUDING ZEROES

MANAGEMENT (%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

Australia

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

Bangladesh

10.9

9.8

11.7

10.4

9.5

11.0

10.2

9.5

11.0

10.0

8.7

10.3

Cambodia

4.8

5.0

7.0

4.3

4.5

6.8

7.0

6.8

7.0

7.0

6.8

7.0

China–Beijing

7.0

6.0

6.5

6.9

6.0

6.1

7.0

6.0

6.5

7.0

6.0

6.5

China–Changsha

7.4

6.5

7.0

–

6.0

–

7.3

6.0

7.0

–

6.0

–

China–Changzhou

7.0

6.0

6.0

7.0

5.9

6.0

7.0

6.0

6.0

7.0

6.0

6.0

China–Chengdu

7.0

6.0

6.0

7.0

6.0

–

7.0

6.0

6.1

7.0

6.0

–

China–Chongqing

6.9

6.0

6.0

–

–

–

7.0

6.2

7.0

–

–

–

China–Dalian

6.6

6.0

6.0

6.3

6.0

6.0

7.0

6.0

6.0

6.8

6.0

6.0

China–Guangdong

7.0

6.0

7.0

7.0

6.0

6.7

7.0

6.5

7.0

7.0

6.4

7.0

China–Hangzhou-Ningbo

7.0

6.0

6.0

–

–

–

7.0

6.0

6.8

–

–

–

China–Hefei-Wuhu

7.0

6.2

6.5

6.9

–

–

7.1

6.3

6.6

7.0

–

–

China–Nanjing

6.0

5.9

6.0

6.0

5.5

6.0

7.0

6.0

6.5

7.0

6.0

6.5

China–Qingdao

7.0

5.9

6.0

6.9

5.6

6.0

7.0

5.8

6.0

7.0

5.7

6.0

China–Shanghai

7.0

6.0

6.0

7.0

6.0

6.0

7.0

6.0

6.0

7.0

6.0

6.0

China–Shenyang-Changchun

6.8

6.0

6.0

6.7

6.0

6.0

7.0

6.0

6.0

6.9

6.0

6.0

China–Suzhou

7.0

6.5

6.5

7.0

6.0

6.3

7.0

6.5

6.5

7.0

6.4

6.5

China–Tianjin

6.3

5.5

6.0

6.0

5.4

6.0

7.0

6.0

6.0

7.0

5.5

6.0

China–Wuhan

7.0

6.0

6.5

7.0

6.0

6.1

7.2

6.0

6.5

7.1

6.0

6.4

China–Wuxi

6.6

5.9

6.0

–

–

–

7.0

6.0

6.0

–

–

–

China–Xiamen-Fuzhou

7.0

6.0

6.8

7.0

6.0

6.5

7.1

6.3

7.0

7.0

6.1

7.0

China–Xian

7.0

6.0

6.5

7.0

6.0

6.5

7.1

6.3

6.5

7.0

6.1

6.5

Hong Kong

4.5

4.2

4.0

4.4

4.1

4.0

4.4

4.0

4.0

4.4

4.0

4.0

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

© 2016 Mercer LLC.

67

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, ASIA PACIFIC, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. EXECUTIVES ASIA PACIFIC

(%) EXCLUDING ZEROES

MANAGEMENT (%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

India*

10.0

10.9

–

10.0

10.6

11.0

10.5

11.0

–

10.5

11.0

11.0

Indonesia

8.4

9.0

9.0

8.0

8.6

9.0

9.0

9.0

9.3

9.0

9.0

9.3

Japan

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

Malaysia

5.1

5.5

5.5

5.0

5.5

5.5

5.3

5.5

5.5

5.2

5.5

5.5

Myanmar

8.5

10.0

10.0

8.0

10.0

10.0

9.0

10.0

10.0

8.2

10.0

10.0

New Zealand

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

Pakistan

11.0

10.0

10.0

11.0

10.0

10.0

11.0

10.5

10.0

11.0

10.5

10.0

Philippines

6.0

6.0

6.5

5.8

6.0

6.0

6.0

6.0

6.0

6.0

6.0

6.0

Singapore

4.0

4.0

4.0

4.0

4.0

4.0

4.0

4.0

4.0

4.0

4.0

4.0

South Korea

4.5

4.1

4.8

4.4

4.0

4.8

4.6

4.4

5.0

4.6

4.3

5.0

Sri Lanka

8.0

9.0

10.0

8.0

9.0

10.0

9.0

8.8

10.0

9.0

8.8

10.0

Taiwan

3.8

4.0

4.0

3.7

3.9

4.0

4.0

4.0

4.0

3.8

3.9

4.0

Thailand

5.0

5.1

5.5

5.0

5.0

5.1

5.3

5.2

5.5

5.2

5.1

5.5

Vietnam

9.4

9.2

10.0

9.0

9.0

10.0

9.0

9.0

10.0

9.0

9.0

10.0

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

See country pages for details.

*IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated missing content will be available to download on November 11.

© 2016 Mercer LLC.

68

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, ASIA PACIFIC, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. PROFESSIONAL — SALES ASIA PACIFIC

(%) EXCLUDING ZEROES

PROFESSIONAL — NONSALES

(%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

Australia

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

Bangladesh

11.0

10.4

11.3

10.8

9.5

10.5

10.6

9.5

10.3

10.4

9.5

10.0

Cambodia

6.7

7.0

7.0

6.4

7.0

7.0

6.7

6.3

6.4

6.3

6.3

6.4

China–Beijing

7.0

6.0

6.6

7.0

6.0

6.5

7.1

6.3

6.8

7.0

6.2

6.5

China–Changsha

7.0

6.0

7.0

–

6.0

–

7.5

6.5

7.0

–

6.5

–

China–Changzhou

7.0

5.5

6.0

7.0

5.5

6.0

7.0

6.0

6.0

7.0

6.0

6.0

China–Chengdu

7.0

6.0

6.0

7.0

6.0

–

7.0

6.0

6.1

7.0

6.0

–

China–Chongqing

7.0

6.0

7.0

–

–

–

7.0

6.0

7.0

–

–

–

China–Dalian

7.0

6.0

6.0

7.0

6.0

6.0

7.0

6.1

6.1

7.0

6.0

6.1

China–Guangdong

7.0

6.2

7.0

7.0

6.1

7.0

7.3

6.7

7.0

7.3

6.7

7.0

China–Hangzhou-Ningbo

7.0

6.0

7.0

–

–

–

7.0

6.3

7.0

–

–

–

China–Hefei-Wuhu

7.0

6.0

6.6

7.0

–

–

7.3

6.3

6.8

7.0

–

–

China–Nanjing

6.5

6.0

6.3

6.4

5.9

6.0

7.0

6.0

6.5

7.0

6.0

6.5

China–Qingdao

7.0

6.0

6.0

7.0

5.8

6.0

7.0

6.0

6.0

7.0

6.0

6.0

China–Shanghai

7.0

6.0

6.5

7.0

6.0

6.5

7.3

6.1

6.5

7.2

6.0

6.5

China–Shenyang-Changchun

7.0

6.0

6.0

7.0

6.0

–

7.3

6.0

6.0

7.0

6.0

6.0

China–Suzhou

7.0

6.5

6.9

7.0

6.0

6.8

7.5

6.9

7.0

7.5

6.8

7.0

China–Tianjin

7.0

5.3

6.0

7.0

5.2

6.0

7.3

6.0

6.0

7.1

6.0

6.0

China–Wuhan

7.3

6.0

6.5

7.3

6.0

6.5

7.4

6.0

6.5

7.4

6.0

6.5

China–Wuxi

7.4

6.0

6.0

–

–

–

7.0

6.0

6.0

–

–

–

China–Xiamen-Fuzhou

7.2

6.0

7.0

7.1

6.0

7.0

7.4

6.7

7.0

7.3

6.6

7.0

China–Xian

7.1

6.3

7.0

7.0

6.1

7.0

7.3

6.5

6.5

7.2

6.4

6.5

Hong Kong

4.3

4.0

4.0

4.2

4.0

4.0

4.4

4.0

4.0

4.4

4.0

4.0

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

© 2016 Mercer LLC.

69

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, ASIA PACIFIC, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. PROFESSIONAL — SALES ASIA PACIFIC

(%) EXCLUDING ZEROES

PROFESSIONAL — NONSALES

(%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

India*

11.0

11.0

–

11.0

11.0

11.0

11.0

11.0

–

10.8

11.0

11.0

Indonesia

9.0

8.8

9.5

9.0

8.8

9.5

9.0

9.0

9.5

9.0

9.0

9.5

Japan

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

Malaysia

5.3

5.5

5.6

5.3

5.5

5.5

5.2

5.5

5.5

5.1

5.5

5.5

Myanmar

9.0

9.5

10.0

8.3

9.0

10.0

10.0

10.0

10.0

10.0

9.5

10.0%

New Zealand

2.9

3.0

3.0

2.9

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

Pakistan

11.0

10.2

11.0

11.0

10.2

11.0

11.0

11.0

11.0

11.0

11.0

11.0

Philippines

6.0

6.0

6.5

6.0

6.0

6.2

6.0

6.0

6.0

6.0

6.0

6.0

Singapore

4.0

4.0

4.0

4.0

4.0

4.0

4.0

4.0

4.0

4.0

4.0

4.0

South Korea

4.8

4.5

5.0

4.7

4.5

5.0

4.6

4.5

5.0

4.6

4.5

5.0

Sri Lanka

8.7

8.5

10.0

8.7

8.5

10.0

9.0

8.5

10.0

9.0

8.5

10.0

Taiwan

3.8

4.0

4.0

3.7

3.9

4.0

3.8

3.8

4.0

3.8

3.7

4.0

Thailand

5.3

5.1

5.5

5.3

5.0

5.5

5.5

5.3

5.6

5.5

5.2

5.5

Vietnam

9.2

9.0

10.0

9.0

9.0

10.0

9.2

9.0

10.0

9.0

9.0

10.0

Note: Salary increase data presented refers to an average of all industries and generally represents median values. See country pages for details. *IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated missing content will be available to download on November 11.

© 2016 Mercer LLC.

70

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, ASIA PACIFIC, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. PARA-PROFESSIONAL — WHITE COLLAR ASIA PACIFIC

(%) EXCLUDING ZEROES

PARA-PROFESSIONAL — BLUE COLLAR

(%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

Australia

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

Bangladesh

10.4

9.5

10.0

9.0

8.3

8.0

10.9

9.5

10.3

10.0

8.8

7.0

Cambodia

7.0

6.8

6.3

7.0

6.8

6.3

7.0

7.0

7.5

7.0

7.0

7.5

China–Beijing

7.0

6.0

6.5

7.0

6.0

6.5

7.3

6.0

6.9

7.1

6.0

6.8

China–Changsha

7.2

6.5

7.0

–

6.5

–

7.6

6.5

7.0

–

6.5

–

China–Changzhou

7.0

6.0

6.0

7.0

6.0

6.0

7.6

6.4

7.0

7.5

6.4

6.9

China–Chengdu

7.0

6.0

6.3

6.7

6.0

–

7.0

6.0

6.0

7.0

6.0

–

China–Chongqing

7.0

6.0

6.5

–

–

–

7.5

7.0

7.0

–

–

–

China–Dalian

7.0

6.0

6.5

7.0

6.0

6.5

7.0

6.0

6.5

7.0

6.0

6.5

China–Guangdong

7.0

6.5

7.0

7.0

6.4

7.0

–

–

–

–

–

–

China–Hangzhou-Ningbo

7.0

6.0

7.0

–

–

–

7.5

6.4

7.0

–

–

–

China–Hefei-Wuhu

7.0

6.5

7.0

7.0

–

–

7.6

7.0

7.0

7.5

–

–

China–Nanjing

7.0

6.0

6.5

7.0

6.0

6.5

7.0

6.1

7.0

7.0

6.0

6.7

China–Qingdao

7.0

6.0

6.0

7.0

6.0

6.0

7.4

6.0

6.9

7.2

6.0

6.9

China–Shanghai

7.0

6.0

6.5

7.0

6.0

6.5

–

–

–

–

–

–

China–Shenyang-Changchun

7.0

6.0

6.0

7.0

6.0

6.0

7.0

6.0

6.9

7.0

6.0

6.9

China–Suzhou

7.3

6.8

7.0

7.3

6.7

7.0

8.0

7.0

7.0

8.0

7.0

7.0

China–Tianjin

7.3

6.0

6.0

7.0

5.9

6.0

7.7

6.4

6.5

7.6

6.0

6.0

China–Wuhan

7.2

6.0

6.5

7.1

6.0

6.5

7.7

6.0

6.9

7.6

6.0

6.7

China–Wuxi

7.4

6.0

6.0

–

–

–

8.0

6.9

6.0

–

–

–

China–Xiamen-Fuzhou

7.5

6.7

7.0

7.5

6.7

7.0

7.5

6.1

7.0

7.5

6.0

7.0

China–Xian

7.0

6.2

6.9

7.0

6.0

6.9

7.3

6.3

6.9

7.1

6.1

6.7

Hong Kong

4.5

4.0

4.0

4.5

4.0

4.0

4.2

4.0

4.0

4.0

3.8

4.0

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

© 2016 Mercer LLC.

71

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, ASIA PACIFIC, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. PARA-PROFESSIONAL — WHITE COLLAR ASIA PACIFIC

(%) EXCLUDING ZEROES

PARA-PROFESSIONAL — BLUE COLLAR

(%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

India*

10.5

11.0

–

10.5

11.0

10.0

11.0

11.0

–

10.8

11.0

10.0

Indonesia

10.0

9.6

10.0

10.0

9.5

10.0

10.0

10.0

10.0

10.0

10.0

10.0

Japan

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

1.9

2.0

Malaysia

5.0

5.5

5.5

5.0

5.5

5.5

5.0

5.3

5.5

5.0

5.1

5.5

Myanmar

9.0

10.0

10.0

8.6

9.8

10.0

10.0

10.0

10.0

10.0

10.0

10.0

New Zealand

3.0

3.0

3.0

2.9

3.0

3.0

3.0

2.9

3.0

2.9

2.8

3.0

Pakistan

11.0

10.0

11.0

11.0

10.0

11.0

10.0

10.0

11.0

10.0

10.0

11.0

Philippines

6.0

6.0

6.0

6.0

6.0

6.0

6.0

6.0

6.0

6.0

5.5

6.0

Singapore

4.0

4.0

4.0

4.0

4.0

4.0

4.0

4.0

4.0

4.0

3.8

4.0

South Korea

4.5

4.4

5.0

4.5

4.3

5.0

4.4

4.1

4.5

4.4

4.0

4.5

Sri Lanka

9.0

9.0

9.3

9.0

9.0

9.3

8.5

8.5

10.0

8.5

8.5

10.0

Taiwan

3.6

3.5

4.0

3.5

3.5

3.9

3.5

3.0

3.5

3.3

3.0

3.5

Thailand

5.5

5.5

5.6

5.3

5.2

5.5

5.3

5.0

5.5

5.3

5.0

5.5

Vietnam

9.0

9.0

10.0

9.0

9.0

10.0

10.0

10.0

10.0

10.0

9.7

10.0

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

See country pages for details.

*IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated missing content will be available to download on November 11.

© 2016 Mercer LLC.

72

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, CENTRAL AND EASTERN EUROPE Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. ALL EMPLOYEES (%) EXCLUDING ZEROES

CENTRAL AND EASTERN EUROPE

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

Albania

3.0

2.8

2.8

2.7

2.8

2.8

Armenia

5.6

5.9

5.5

5.5

5.5

5.0

Azerbaijan

7.6

8.0

8.0

6.2

8.0

8.0

Belarus

10.4

10.5

11.0

10.0

10.2

10.0

Bosnia and Herzegovina

3.0

2.0

2.5

3.0

2.0

2.4

Bulgaria

4.0

3.8

4.0

4.0

3.8

4.0

Croatia

2.8

2.7

2.7

2.7

2.7

2.7

Czech Republic

2.8

2.7

2.8

2.8

2.7

2.8

Estonia

3.0

3.0

3.0

3.0

3.0

3.0

Georgia

6.5

6.5

6.4

6.5

6.5

6.3

Hungary

3.5

3.3

3.4

3.5

3.3

3.4

Kazakhstan

8.2

8.7

9.0

8.0

8.5

9.0

Latvia

2.9

3.0

3.0

2.9

3.0

3.0

Lithuania

3.0

3.0

3.0

3.0

3.0

3.0

Macedonia

3.0

2.4

2.7

2.8

2.2

2.6

Moldova

6.0

6.3

7.0

6.0

6.1

7.0

Montenegro

2.7

3.0

2.8

2.3

3.0

2.4

Poland

3.4

3.0

3.1

3.3

3.0

3.0

Romania

4.5

4.2

4.5

4.3

4.0

4.5

Russia

7.8

8.0

8.0

7.5

8.0

8.0

Serbia

5.4

4.5

4.5

5.0

4.5

4.5

Slovakia

3.0

2.7

2.8

3.0

2.7

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

© 2016 Mercer LLC.

73

See country pages 2.8 for details. See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, CENTRAL AND EASTERN EUROPE, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. ALL EMPLOYEES (%) EXCLUDING ZEROES

CENTRAL AND EASTERN EUROPE

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

Slovenia

2.5

2.5

2.5

2.5

2.5

2.5

Turkey

7.7

8.0

8.0

7.6

8.0

8.0

Ukraine

9.0

10.0

10.0

8.6

10.0

10.0

Uzbekistan

11.1

10.7

11.4

9.5

9.2

11.3

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

© 2016 Mercer LLC.

74

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, CENTRAL AND EASTERN EUROPE, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. EXECUTIVES CENTRAL AND EASTERN EUROPE

(%) EXCLUDING ZEROES

MANAGEMENT (%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

Albania

3.0

2.9

2.8

2.9

2.8

2.8

3.0

2.8

2.8

2.9

2.8

2.8

Armenia

6.0

5.7

5.0

5.8

5.3

5.0

5.6

6.0

5.5

5.5

5.4

5.0

Azerbaijan

7.6

8.0

8.0

6.2

7.7

8.0

7.7

8.0

8.0

6.3

8.0

8.0

Belarus

11.3

11.6

11.3

11.0

10.5

10.3

10.9

11.0

10.7

10.7

10.4

10.0

Bosnia and Herzegovina

3.0

2.2

2.4

3.0

2.1

2.4

3.0

2.0

2.5

3.0

2.0

2.4

Bulgaria

4.0

3.8

3.9

4.0

3.5

–

4.0

3.9

4.0

4.0

3.6

4.0

Croatia

2.9

2.7

2.7

2.8

2.6

2.7

2.8

2.8

2.7

2.8

2.6

2.7

Czech Republic

2.7

2.6

2.8

2.6

2.5

2.8

2.8

2.7

2.8

2.7

2.6

2.8

Estonia

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

Georgia

6.3

6.5

6.3

6.0

6.5

6.3

6.1

6.5

6.4

6.1

6.5

6.4

Hungary

3.5

3.3

3.4

3.5

3.3

3.3

3.5

3.3

3.3

3.5

3.3

3.3

Kazakhstan

8.0

9.0

9.5

8.0

9.0

8.4

8.2

8.9

10.0

8.0

8.6

9.0

Latvia

2.9

3.0

3.0

2.9

2.9

3.0

2.9

3.0

3.0

2.9

2.9

3.0

Lithuania

3.0

3.0

3.0

3.0

2.9

3.0

3.0

3.0

3.0

3.0

2.9

3.0

Macedonia

3.3

2.2

2.7

2.7

2.1

2.6

3.0

2.4

2.7

2.8

2.2

2.6

Moldova

6.0

6.3

7.0

6.0

6.1

7.0

6.0

6.3

7.0

6.0

6.1

7.0

Montenegro

3.0

3.7

2.8

2.7

3.7

2.4

3.0

3.0

2.8

3.0

3.0

2.4

Poland

3.3

3.0

3.0

3.2

3.0

3.0

3.4

3.0

3.0

3.3

3.0

3.0

Romania

4.3

4.2

4.5

4.0

4.0

4.5

4.4

4.4

4.5

4.1

4.0

4.5

Russia

7.7

8.0

8.0

7.3

8.0

8.0

7.7

8.0

8.0

7.5

8.0

8.0

Serbia

5.5

4.7

4.8

5.0

4.5

4.6

5.4

4.5

4.6

5.0

4.5

4.5

Slovakia

3.0

2.7

2.8

3.0

2.7

2.7

3.0

2.7

2.8

2.9

2.6

2.8

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

© 2016 Mercer LLC.

75

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, CENTRAL AND EASTERN EUROPE, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. EXECUTIVES CENTRAL AND EASTERN EUROPE

(%) EXCLUDING ZEROES

MANAGEMENT (%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

Slovenia

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.6

2.6

2.5

2.5

2.6

Turkey

7.8

8.0

8.0

7.8

8.0

8.0

7.8

8.0

8.0

7.8

8.0

8.0

Ukraine

9.0

10.0

10.0

9.0

10.0

10.0

9.0

10.0

10.0

9.0

10.0

10.0

Uzbekistan

8.1

15.0

12.0

5.5

15.0

11.0

10.0

9.0

10.0

7.5

9.0

10.0

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

© 2016 Mercer LLC.

76

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, CENTRAL AND EASTERN EUROPE, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. PROFESSIONAL — SALES CENTRAL AND EASTERN EUROPE

(%) EXCLUDING ZEROES

PROFESSIONAL — NONSALES

(%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

Albania

3.0

2.8

2.8

2.7

2.8

2.8

3.0

2.8

2.8

2.8

2.8

2.8

Armenia

5.5

5.4

5.5

5.4

5.2

5.0

5.6

5.5

5.0

5.5

5.3

5.0

Azerbaijan

7.7

8.0

8.0

6.3

7.9

7.6

7.8

7.7

8.0

6.3

7.2

7.6

Belarus

10.9

10.5

10.7

10.5

10.4

10.0

11.0

11.6

11.5

10.4

10.5

10.3

Bosnia and Herzegovina

3.0

2.0

2.5

3.0

2.0

2.4

3.0

2.0

2.5

3.0

2.0

2.4

Bulgaria

4.0

3.7

4.0

4.0

3.5

4.0

4.0

3.9

3.9

4.0

3.7

–

Croatia

2.9

2.7

2.7

2.8

2.6

2.7

2.8

2.7

2.7

2.7

2.6

2.7

Czech Republic

2.8

2.7

2.8

2.8

2.6

2.8

2.8

2.6

2.8

2.7

2.6

2.8

Estonia

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

Georgia

6.4

6.5

6.4

6.4

6.5

6.3

6.3

6.5

6.4

6.3

6.5

6.3

Hungary

3.5

3.3

3.3

3.5

3.3

3.3

3.5

3.3

3.3

3.5

3.3

3.3

Kazakhstan

8.2

9.0

9.0

8.0

8.7

9.0

8.2

9.0

9.5

8.0

8.6

9.0

Latvia

2.8

3.0

3.0

2.8

2.9

3.0

2.9

3.0

3.0

2.8

2.9

3.0

Lithuania

3.0

3.0

3.0

3.0

2.9

3.0

3.0

3.0

3.0

3.0

2.9

3.0

Macedonia

3.0

2.4

2.7

2.8

2.2

2.6

3.0

2.4

2.7

2.8

2.2

2.6

Moldova

6.0

6.3

7.0

6.0

6.1

7.0

6.0

6.3

7.0

6.0

6.1

7.0

Montenegro

3.0

3.0

2.8

2.3

3.0

2.4

3.0

3.0

2.8

2.7

3.0

2.4

Poland

3.3

3.0

3.0

3.2

3.0

3.0

3.3

3.0

3.0

3.2

3.0

3.0

Romania

4.5

4.4

4.5

4.3

4.2

4.5

4.5

4.3

4.5

4.3

4.1

4.5

Russia

7.7

8.0

8.0

7.4

8.0

8.0

7.7

8.0

8.0

7.4

8.0

8.0

Serbia

5.5

4.5

4.5

5.1

4.5

4.5

5.4

4.6

4.6

5.0

4.5

4.5

Slovakia

3.0

2.7

2.8

3.0

2.7

2.8

3.0

2.7

2.8

3.0

2.7

2.7

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

© 2016 Mercer LLC.

77

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, CENTRAL AND EASTERN EUROPE, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. PROFESSIONAL — SALES CENTRAL AND EASTERN EUROPE

(%) EXCLUDING ZEROES

PROFESSIONAL — NONSALES

(%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

Slovenia

2.5

2.5

2.6

2.5

2.5

2.6

2.5

2.5

2.6

2.5

2.5

2.6

Turkey

7.8

8.0

8.0

7.7

8.0

8.0

7.8

8.0

8.0

7.8

8.0

8.0

Ukraine

9.0

10.9

10.0

8.7

10.7

10.0

9.0

10.0

10.0

8.7

10.0

10.0

Uzbekistan

10.0

9.0

10.0

10.0

9.0

10.0

13.0

9.0

9.0

11.5

9.0

9.0

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

© 2016 Mercer LLC.

78

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, CENTRAL AND EASTERN EUROPE, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. PARA-PROFESSIONAL — WHITE COLLAR CENTRAL AND EASTERN EUROPE

(%) EXCLUDING ZEROES

PARA-PROFESSIONAL — BLUE COLLAR

(%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

Albania

3.1

2.8

2.8

2.7

2.8

2.8

3.0

2.8

2.8

2.7

2.8

2.8

Armenia

5.6

5.4

5.0

5.5

5.2

5.0

5.8

5.6

5.0

5.6

5.2

5.0

Azerbaijan

7.8

8.0

8.0

6.9

7.5

7.9

7.8

8.0

8.0

7.4

7.7

8.0

Belarus

11.0

11.7

11.6

10.8

11.0

11.0

11.0

11.6

11.6

10.8

10.5

10.9

Bosnia and Herzegovina

3.0

2.0

2.5

3.0

2.0

2.4

3.0

2.0

2.4

3.0

2.0

2.4

Bulgaria

4.0

3.8

4.0

4.0

3.7

4.0

4.0

3.9

3.9

4.0

3.9

–

Croatia

2.8

2.7

2.7

2.7

2.6

2.7

2.9

2.6

2.7

2.7

2.5

2.6

Czech Republic

2.8

2.7

2.8

2.8

2.5

2.8

2.7

2.6

2.8

2.5

2.5

2.8

Estonia

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

3.0

2.9

3.0

Georgia

6.5

6.5

6.4

6.5

6.5

6.3

6.6

6.5

6.3

6.6

6.5

6.3

Hungary

3.5

3.3

3.3

3.5

3.3

3.3

3.5

3.3

3.3

3.5

3.3

3.3

Kazakhstan

8.1

9.0

9.8

8.0

8.7

9.0

8.2

9.0

9.0

8.0

8.7

8.0

Latvia

2.8

3.0

3.0

2.8

3.0

3.0

2.8

2.9

3.0

2.8

2.9

3.0

Lithuania

3.0

2.9

3.0

3.0

2.9

3.0

3.0

2.9

3.0

3.0

2.9

3.0

Macedonia

2.9

2.4

2.7

2.8

2.2

2.6

2.8

2.4

2.7

2.4

2.2

2.6

Moldova

6.0

6.3

7.0

6.0

6.1

7.0

6.0

6.3

7.0

6.0

6.2

7.0

Montenegro

2.7

3.4

2.8

2.2

3.0

2.4

2.2

3.4

2.8

1.7

3.0

2.4

Poland

3.3

3.0

3.0

3.2

3.0

3.0

3.3

3.0

3.0

3.2

3.0

3.0

Romania

4.4

4.3

4.5

4.3

4.0

4.5

4.3

4.1

4.5

4.0

4.0

4.5

Russia

7.7

8.0

8.0

7.4

8.0

8.0

7.9

8.0

8.0

7.5

8.0

8.0

Serbia

5.5

4.5

4.6

5.0

4.5

4.5

5.2

4.5

4.5

5.0

4.4

4.4

Slovakia

3.0

2.7

2.8

3.0

2.7

2.7

3.0

2.7

2.8

2.9

2.6

2.7

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

© 2016 Mercer LLC.

79

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, CENTRAL AND EASTERN EUROPE, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. PARA-PROFESSIONAL — WHITE COLLAR CENTRAL AND EASTERN EUROPE Slovenia

(%) EXCLUDING ZEROES

PARA-PROFESSIONAL — BLUE COLLAR

(%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

2.5

2.5

2.6

2.5

2.5

2.6

2.6

2.5

2.5

2.6

2.5

2.5

Turkey

7.8

8.0

8.0

7.7

8.0

8.0

7.8

8.0

8.0

7.8

8.0

8.0

Ukraine

9.0

10.0

10.0

8.6

10.0

10.0

9.0

10.0

10.0

8.6

10.0

10.0

Uzbekistan

10.0

9.5

12.5

10.0

9.0

12.5

15.5

12.5

15.0

12.5

10.0

15.0

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

© 2016 Mercer LLC.

80

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, MIDDLE EAST Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. ALL EMPLOYEES MIDDLE EAST

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

5.0

5.0

5.0

5.0

5.0

5.0

Iran

–

20.1

20.2

–

20.0

20.1

Iraq

5.3

5.8

6.0

4.8

5.8

6.0

Israel

3.2

3.0

3.1

3.2

3.0

3.1

Jordan

5.7

5.0

5.3

5.7

5.0

5.3

Kuwait

5.0

5.0

5.0

5.0

5.0

5.0

Lebanon

5.8

5.4

5.4

5.8

5.4

5.4

Oman

5.0

5.0

5.0

5.0

5.0

5.0

Qatar

5.0

5.0

5.0

5.0

5.0

5.0

Saudi Arabia

5.0

5.0

5.0

5.0

5.0

5.0

United Arab Emirates

5.0

5.0

5.0

4.9

5.0

5.0

Yemen

9.3

8.2

8.8

9.1

8.1

8.5

Bahrain

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

© 2016 Mercer LLC.

81

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, MIDDLE EAST, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. EXECUTIVES MIDDLE EAST

(%) EXCLUDING ZEROES

MANAGEMENT (%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

5.0

5.0

5.0

4.8

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

Iran

–

20.1

20.2

–

20.0

20.1

–

20.1

20.2

–

20.0

20.1

Iraq

5.3

5.8

5.9

4.8

5.8

5.9

5.7

5.8

5.9

5.0

5.8

5.9

Israel

3.1

3.0

3.1

3.1

3.0

3.1

3.1

3.0

3.1

3.1

3.0

3.1

Jordan

5.7

5.0

5.3

5.7

5.0

5.3

5.7

5.0

5.3

5.7

5.0

5.3

Kuwait

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

Lebanon

5.8

5.4

5.4

5.8

5.4

5.4

5.8

5.4

5.4

5.8

5.4

5.4

Oman

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

Qatar

5.0

5.0

5.0

5.0

4.9

5.0

5.0

5.0

5.0

5.0

4.9

5.0

Saudi Arabia

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

United Arab Emirates

5.0

4.9

5.0

4.9

4.9

5.0

5.0

5.0

5.0

4.9

4.9

5.0

Yemen

9.1

8.2

8.8

8.9

8.1

8.5

9.3

8.2

8.8

9.1

8.1

8.5

Bahrain

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

© 2016 Mercer LLC.

82

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, MIDDLE EAST, CONTINUED Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. PROFESSIONAL — SALES MIDDLE EAST

(%) EXCLUDING ZEROES

PROFESSIONAL — NONSALES

(%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

Iran

–

20.1

20.2

–

20.0

20.1

–

20.1

20.2

–

20.0

20.1

Iraq

5.7

5.8

5.9

5.0

5.8

5.9

5.7

5.8

5.9

5.0

5.8

5.9

Israel

3.1

3.0

3.1

3.1

3.0

3.1

3.1

3.0

3.1

3.1

3.0

3.1

Jordan

5.7

5.0

5.3

5.7

5.0

5.3

5.7

5.0

5.3

5.7

5.0

5.3

Kuwait

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

4.9

Lebanon

5.8

5.5

5.4

5.8

5.5

5.4

5.8

5.5

5.4

5.8

5.5

5.4

Oman

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

Qatar

5.0

5.0

5.0

5.0

4.8

5.0

5.0

5.0

5.0

5.0

4.8

5.0

Saudi Arabia

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

United Arab Emirates

5.0

4.9

5.0

5.0

4.9

5.0

5.0

5.0

5.0

4.9

4.9

5.0

Yemen

9.3

8.2

8.8

9.1

8.1

8.5

9.3

8.2

8.8

9.1

8.1

8.5

Bahrain

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

© 2016 Mercer LLC.

83

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, MIDDLE EAST, CONTINUED PARA-PROFESSIONAL — WHITE COLLAR MIDDLE EAST

(%) EXCLUDING ZEROES

PARA-PROFESSIONAL — BLUE COLLAR

(%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

4.9

5.0

5.0

Iran

–

20.1

20.2

–

20.0

20.1

–

21.6

24.0

–

20.2

22.1

Iraq

5.7

5.8

5.9

5.0

5.8

5.9

5.3

5.8

5.9

4.8

5.8

5.9

Israel

3.1

3.0

3.1

3.1

3.0

3.1

3.2

3.0

3.1

3.1

3.0

3.1

Jordan

5.7

5.0

5.3

5.7

5.0

5.3

5.7

5.0

5.3

5.7

5.0

5.3

Kuwait

5.0

5.0

5.0

5.0

5.0

4.9

5.0

5.0

5.0

5.0

5.0

5.0

Lebanon

5.8

5.5

5.4

5.8

5.5

5.4

5.8

5.5

5.4

5.8

5.5

5.4

Oman

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

5.0

Qatar

5.0

5.0

5.0

5.0

4.9

5.0

5.0

5.0

5.0

5.0

5.0

5.0

Saudi Arabia

5.0

5.0

5.0

5.0

5.0

5.0

5.4

5.0

5.0

5.3

5.0

5.0

United Arab Emirates

5.0

4.9

5.0

4.9

4.8

5.0

5.0

4.9

5.0

4.9

4.8

5.0

Yemen

9.3

8.2

8.8

9.1

8.1

8.5

9.3

8.2

8.8

9.1

8.1

8.5

Bahrain

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

© 2016 Mercer LLC.

84

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, WESTERN EUROPE Figures in blue represent the highest value in the region, by employee level, and figures in purple represent the lowest value. ALL EMPLOYEES (%) EXCLUDING ZEROES

WESTERN EUROPE

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

Austria

2.7

2.5

2.6

2.7

2.5

2.5

Belgium

2.0

2.0

2.1

2.0

2.0

2.1

Cyprus

0.0 – 0.2

0.0 – 1.0

0.0 – 1.0

0.0 – 0.2

0.0 – 1.0

–

Denmark

2.3

2.4

2.5

2.3

2.3

2.5

Finland

2.2

2.0

2.0

2.2

2.0

2.0

France

2.3

2.1

2.2

2.2

2.1

2.2

Germany

2.8

2.7

2.9

2.7

2.7

2.9

Greece

1.9

1.7

1.9

1.7

1.6

1.8

Ireland

2.0

2.4

2.5

2.0

2.4

2.5

Italy

2.5

2.3

2.5

2.5

2.3

2.5

Luxembourg

2.5

2.5

2.5

2.5

2.0

2.5

Malta*

1.5

4.9

2.6

1.5

4.9

2.6

Netherlands

2.5

2.5

2.5

2.5

2.5

2.5

Norway

3.0

2.9

3.0

3.0

2.8

3.0

Portugal

2.0

1.9

2.0

2.0

1.8

2.0

Spain

2.0

2.0

2.0

2.0

2.0

2.0

Sweden

2.5

2.5

2.5

2.5

2.5

2.5

Switzerland

1.8

1.6

2.0

1.5

1.5

1.8

United Kingdom

2.8

2.7

2.8

2.7

2.7

2.8

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

See country pages for details.

*IMPORTANT: Salary increase data by career level was not available at the time of release; this market will be updated in GCPR-Online as data become available.

© 2016 Mercer LLC.

85

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, WESTERN EUROPE, CONTINUED CENTRAL Figures in AND blueEASTERN represent the highest value in the region, by employee level, and figures in purple represent the lowest value. EUROPE

EXECUTIVES WESTERN EUROPE

(%) EXCLUDING ZEROES

MANAGEMENT (%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

Austria

2.7

2.5

2.5

2.7

2.5

2.5

2.7

2.5

2.6

2.7

2.5

2.6

Belgium

2.1

2.0

2.1

2.0

2.0

2.0

2.0

2.0

2.1

2.0

2.0

2.1

Cyprus

0.0 – 0.2

0.0 – 1.0

0.0 – 1.0

0.0 – 0.2

0.0 – 1.0

–

0.0 – 0.2

0.0 – 1.0

0.0 – 1.0

0.0 – 0.2

0.0 – 1.0

–

Denmark

2.4

2.5

2.5

2.3

2.4

2.5

2.3

2.4

2.5

2.2

2.3

2.5

Finland

2.2

2.0

2.0

2.2

2.0

2.0

2.2

2.0

2.0

2.2

2.0

2.0

France

2.1

2.0

2.2

2.0

2.0

2.2

2.3

2.1

2.2

2.1

2.0

2.2

Germany

2.7

2.7

2.9

2.6

2.7

2.9

2.7

2.7

2.9

2.7

2.7

2.9

Greece

1.9

1.6

1.9

1.6

1.5

1.8

1.9

1.7

1.9

1.6

1.6

1.8

Ireland

2.0

2.4

2.5

2.0

2.4

2.5

2.0

2.4

2.5

2.0

2.4

2.5

Italy

2.5

2.3

2.5

2.4

2.3

2.5

2.5

2.4

2.5

2.5

2.3

2.5

Luxembourg

2.5

2.5

2.5

2.5

2.0

2.5

2.5

2.5

2.5

2.5

2.3

2.5

Malta*

1.8

7.7

–

1.8

7.7

–

1.8

3.6

–

1.8

3.6

–

Netherlands

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

Norway

3.0

2.9

3.0

2.8

2.8

3.0

3.0

2.9

3.0

2.9

2.7

2.9

Portugal

2.0

1.8

2.0

1.8

1.8

2.0

2.0

1.8

2.0

2.0

1.8

2.0

Spain

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

Sweden

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

Switzerland

2.0

1.6

2.0

1.7

1.5

1.8

2.0

1.6

2.0

1.6

1.5

1.8

United Kingdom

2.8

2.7

2.8

2.7

2.6

2.8

2.8

2.7

2.8

2.7

2.6

2.8

Note: Salary increase data presented refers to an average of all industries and generally represents median values. *IMPORTANT: Salary increase data by career level was not available at the time of release; this market will be updated in GCPR-Online as data become available.

© 2016 Mercer LLC.

86

See country pages for details.

Global Compensation Planning Report — October Update

SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, WESTERN EUROPE, CONTINUED CENTRAL Figures in AND blueEASTERN represent the highest value in the region, by employee level, and figures in purple represent the lowest value. EUROPE

PROFESSIONAL — SALES WESTERN EUROPE

(%) EXCLUDING ZEROES

PROFESSIONAL — NONSALES

(%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

Austria

2.7

2.5

2.6

2.7

2.5

2.5

2.7

2.5

2.6

2.7

2.5

2.6

Belgium

2.0

2.0

2.1

2.0

2.0

2.1

2.0

2.0

2.1

2.0

2.0

2.1

Cyprus

0.0 – 0.2

0.0 – 1.0

0.0 – 1.0

0.0 – 0.2

0.0 – 1.0

–

0.0 – 0.2

0.0 – 1.0

0.0 – 1.0

0.0 – 0.2

0.0 – 1.0

–

Denmark

2.3

2.3

2.5

2.3

2.3

2.5

2.3

2.3

2.5

2.2

2.3

2.5

Finland

2.2

2.0

2.0

2.2

2.0

2.0

2.2

2.0

2.0

2.1

2.0

2.0

France

2.2

2.0

2.2

2.0

2.0

2.2

2.3

2.1

2.2

2.1

2.0

2.2

Germany

2.8

2.7

2.9

2.7

2.7

2.8

2.8

2.7

2.9

2.7

2.7

2.9

Greece

1.9

1.7

1.9

1.6

1.6

1.8

1.9

1.7

1.9

1.7

1.6

1.8

Ireland

2.0

2.4

2.5

2.0

2.4

2.5

2.0

2.4

2.5

2.0

2.4

2.5

Italy

2.5

2.3

2.5

2.5

2.3

2.5

2.5

2.3

2.5

2.5

2.3

2.5

Luxembourg

2.5

2.3

2.5

2.5

2.0

2.5

2.5

2.3

2.5

2.5

2.0

2.4

Malta*

1.5

0.8

–

1.5

0.8

–

1.5

4.6

–

1.5

4.6

–

Netherlands

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

Norway

3.0

2.9

3.0

3.0

2.8

3.0

3.0

2.9

3.0

2.9

2.8

2.9

Portugal

2.0

1.8

2.0

1.8

1.8

2.0

2.0

1.8

2.0

1.8

1.8

2.0

Spain

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

Sweden

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

Switzerland

1.8

1.6

2.0

1.5

1.5

1.8

1.8

1.6

2.0

1.5

1.5

1.8

United Kingdom

2.8

2.7

2.8

2.7

2.6

2.8

2.8

2.7

2.8

2.7

2.6

2.8

Note: Salary increase data presented refers to an average of all industries and generally represents median values. *IMPORTANT: Salary increase data by career level was not available at the time of release; this market will be updated in GCPR-Online as data become available.

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SALARY INCREASE TRENDS

Data for 2015

Actual/estimated

Data for 2016

Actual/budgeted/forecast

Data for 2017

Forecast/projected

SALARY INCREASE TRENDS EXCLUDING AND INCLUDING ZEROES, WESTERN EUROPE, CONTINUED CENTRAL Figures in AND blueEASTERN represent the highest value in the region, by employee level, and figures in purple represent the lowest value. EUROPE

PARA-PROFESSIONAL — WHITE COLLAR WESTERN EUROPE

(%) EXCLUDING ZEROES

PARA-PROFESSIONAL — BLUE COLLAR

(%) INCLUDING ZEROES

(%) EXCLUDING ZEROES

(%) INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

2015

2016

2017

2015

2016

2017

Austria

2.7

2.5

2.6

2.6

2.5

2.6

2.7

2.5

2.6

2.7

2.5

2.6

Belgium

2.0

2.0

2.1

2.0

2.0

2.1

2.0

2.0

2.0

2.0

2.0

2.0

Cyprus

0.0 – 0.2

0.0 – 1.0

0.0 – 1.0

0.0 – 0.2

0.0 – 1.0

–

0.0 – 0.2

0.0 – 1.0

0.0 – 1.0

0.0 – 0.2

0.0 – 1.0

–

Denmark

2.3

2.3

2.5

2.2

2.3

2.5

2.3

2.3

2.5

2.2

2.3

2.5

Finland

2.2

2.0

2.0

2.2

2.0

2.0

2.2

2.0

2.0

2.2

2.0

2.0

France

2.2

2.0

2.2

2.0

2.0

2.2

2.2

2.0

2.2

2.0

2.0

2.2

Germany

2.8

2.7

2.9

2.8

2.7

2.9

2.8

2.7

2.9

2.8

2.7

2.9

Greece

1.9

1.7

1.9

1.5

1.6

1.8

1.9

1.7

1.9

1.6

1.6

1.8

Ireland

2.0

2.4

2.5

2.0

2.4

2.5

2.0

2.3

2.5

2.0

2.2

2.5

Italy

2.5

2.4

2.5

2.5

2.3

2.5

2.5

2.3

2.5

2.4

2.2

2.5

Luxembourg

2.5

2.5

2.5

2.5

2.0

2.4

2.5

2.0

2.5

2.5

2.0

2.4

Malta*

1.5

5.8

–

1.5

5.8

–

1.5

3.7

–

1.5

3.7

–

Netherlands

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

Norway

3.0

2.9

3.0

3.0

2.8

3.0

3.0

2.9

3.0

3.0

2.7

2.9

Portugal

2.0

1.9

2.0

1.8

1.8

2.0

2.0

1.8

2.0

1.8

1.8

2.0

Spain

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

2.0

Sweden

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

Switzerland

1.5

1.7

2.0

1.5

1.5

1.8

1.5

1.6

2.0

1.4

1.5

1.8

United Kingdom

2.8

2.7

2.8

2.7

2.6

2.8

2.8

2.6

2.8

2.7

2.5

2.8

Note: Salary increase data presented refers to an average of all industries and generally represents median values. *IMPORTANT: Salary increase data by career level was not available at the time of release; this market will be updated in GCPR-Online as data become available.

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SHORT-TERM INCENTIVE TRENDS

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SHORT-TERM INCENTIVE TRENDS The following tables summarise the median target STI bonus as a percentage of base salary for 2016. Please note: In some instances, the data reflect 2015. Please refer to the individual country pages for more details. SHORT-TERM INCENTIVE, MEDIAN TARGET INCENTIVE AS A PERCENTAGE OF BASE SALARY BY EMPLOYEE LEVEL, AFRICA AFRICA

EXECUTIVE

MANAGEMENT

Algeria

25

Angola

PROFESSIONAL

PARA-PROFESSIONAL

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

15

23

12

–

–

20

20

19

12

8

13

Botswana

19

15

13

11

11

10

Cameroon

20

15

20

10

10

8

Côte d’Ivoire

18

15

13

10

13

10

Democratic Republic of Congo

21

19

15

11

10

10

Egypt

20

15

15

10

10

8

Ethiopia

20

15

15

11

10

12

Gabon

21

16

10

10

10

10

Ghana

23

16

15

11

10

12

Guinea

16

13

26

11

10

10

Kenya

23

15

13

10

10

10

Libya*

–

–

–

15

–

–

Malawi

15

15

14

10

10

10

Mauritius

20

15

15

12

10

10

Morocco

20

15

13

10

8

8

Mozambique

22

15

11

10

9

9

Namibia*

16

16

16

16

16

–

Nigeria

20

18

13

13

10

10

Rwanda

30

20

15

14

14

–

Senegal

17

12

8

8

8

9

NOTE: Availability of data for some markets was limited at the time of release. For countries indicated with an asterisk, short-term incentive data reflect information reported in 2015.

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SHORT-TERM INCENTIVE TRENDS SHORT-TERM INCENTIVE, MEDIAN TARGET INCENTIVE AS A PERCENTAGE OF BASE SALARY BY EMPLOYEE LEVEL, AFRICA, CONTINUED AFRICA

PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE

MANAGEMENT

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

South Africa

20

15

12

10

8

8

Tanzania

20

15

13

13

10

10

Tunisia

19

14

19

14

–

–

Uganda

18

12

10

10

10

9

Zambia

20

15

12

10

10

10

Zimbabwe

25

20

14

11

10

10

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SHORT-TERM INCENTIVE TRENDS SHORT-TERM INCENTIVE, MEDIAN TARGET INCENTIVE AS A PERCENTAGE OF BASE SALARY BY EMPLOYEE LEVEL, AMERICAS AMERICAS

PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE

MANAGEMENT

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

25

16

12

9

9

8

Bolivia

–

11

12

8

8

–

Brazil

28

17

10

9

9

10

Canada

35

18

14

10

6

5

Chile

27

17

13

10

10

10

Colombia

25

16

11

8

8

7

Costa Rica

22

13

10

8

8

6

Dominican Republic

23

14

13

9

9

7

Argentina*

Ecuador

19

12

11

9

9

8

El Salvador

21

14

15

9

9

6

Guatemala

20

13

10

9

9

9

Honduras

–

13

9

8

8

4

Mexico

30

18

19

11

10

–

Mexico–Bajio

26

14

–

8

7

4

Mexico–Monterrey-Saltillo

25

15

8

10

8

9

Mexico–Reynosa

–

–

–

–

–

–

Nicaragua

19

15

11

8

8

4

Panama

20

17

10

9

9

12

Paraguay

25

15

11

9

–

10

Peru

23

14

10

9

9

10

Puerto Rico

22

12

11

8

8

3

–

15

12

9

9

–

United States

39

17

16

10

5

5

Uruguay

22

19

11

9

9

–

Venezuela

26

16

12

10

10

9

Trinidad and Tobago

NOTE: Availability of data for some markets was limited at the time of release. For countries indicated with an asterisk, short-term incentive data reflect information reported in 2015.

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SHORT-TERM INCENTIVE TRENDS SHORT-TERM INCENTIVE, MEDIAN TARGET INCENTIVE AS A PERCENTAGE OF BASE SALARY BY EMPLOYEE LEVEL, ASIA PACIFIC ASIA PACIFIC

EXECUTIVE

MANAGEMENT

Australia

25

Bangladesh

20

PROFESSIONAL

PARA-PROFESSIONAL

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

15

10

10

7

6

15

–

10

–

–

Cambodia

18

17

15

13

17

17

China–Beijing

25

18

18

15

14

15

China–Changsha

25

20

23

17

15

15

China–Changzhou

22

19

16

15

15

15

China–Chengdu

26

18

15

15

14

13

China–Chongqing

25

20

17

15

15

15

China–Dalian

25

18

17

15

15

15

China–Guangdong

25

18

20

15

15

–

China–Hangzhou-Ningbo

25

20

18

17

15

15

China–Hefei/wuhu

25

19

22

15

14

14

China–Nanjing

25

19

18

16

15

17

China–Qingdao

23

19

16

15

15

15

China–Shanghai

24

18

18

15

14

–

China–Shenyang-Changchun

25

20

19

15

14

15

China–Suzhou

20

17

16

15

13

15

China–Tianjin

25

20

17

15

15

15

China–Wuhan

25

19

17

15

15

15

China–Wuxi-Changzhou

25

18

20

15

15

17

China–Xiamen-Fuzhou

25

19

20

15

15

13

China–Xian

25

19

21

15

15

15

Hong Kong

25

15

13

12

10

10

India*

23

15

11

11

10

10

Indonesia

22

17

15

14

13

12

NOTE: Availability of data for some markets was limited at the time of release. For countries indicated with an asterisk, short-term incentive data reflect information reported in 2015.

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SHORT-TERM INCENTIVE TRENDS SHORT-TERM INCENTIVE, MEDIAN TARGET INCENTIVE AS A PERCENTAGE OF BASE SALARY BY EMPLOYEE LEVEL, ASIA PACIFIC, CONTINUED ASIA PACIFIC

PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE

MANAGEMENT

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Japan

23

15

12

10

9

8

Malaysia

20

17

15

15

13

12

Myanmar

22

18

18

16

15

16

New Zealand

24

15

10

10

8

5

Pakistan

22

17

15

15

15

15

Philippines

21

15

12

11

10

10

Singapore

25

18

15

15

14

15

South Korea

23

15

15

12

10

10

Sri Lanka

17

17

14

12

14

11

Taiwan

20

16

15

14

12

12

Thailand

23

18

17

16

16

17

Vietnam

21

16

15

15

15

15

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SHORT-TERM INCENTIVE TRENDS SHORT-TERM INCENTIVE, MEDIAN TARGET INCENTIVE AS A PERCENTAGE OF BASE SALARY BY EMPLOYEE LEVEL, CENTRAL AND EASTERN EUROPE CENTRAL AND EASTERN EUROPE

EXECUTIVE

MANAGEMENT

Albania*

–

–

PROFESSIONAL

PARA-PROFESSIONAL

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

–

–

–

–

Armenia*

20

15

–

10

9

9

Azerbaijan

23

16

15

10

10

13

Belarus

18

15

19

10

15

40

Bosnia and Herzegovina*

16

16

18

10

7

10

Bulgaria

20

17

20

11

10

10

Croatia

25

16

17

10

8

9

Czech Republic

20

15

20

11

10

15

Estonia

17

15

14

10

10

16

Georgia*

20

14

17

10

8

–

Hungary

20

15

15

10

8

10

Kazakhstan

20

15

20

10

10

10

Latvia

20

15

17

12

10

14

Lithuania

20

15

15

10

10

10

Macedonia

18

15

14

11

8

–

Moldova

–

18

–

10

10

–

Montenegro*

28

18

–

15

10

10

Poland

20

15

20

10

10

10

Romania

21

15

15

10

10

10

Russia

20

15

17

10

10

13

Serbia

20

15

19

10

10

10

Slovakia

20

16

20

12

10

12

Slovenia

23

15

16

10

10

10

Turkey

23

15

15

10

8

8

Ukraine

20

15

18

12

10

13

Uzbekistan

20

16

15

10

10

10

NOTE: Availability of data for some markets was limited at the time of release. For countries indicated with an asterisk, short-term incentive data reflect information reported in 2015.

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SHORT-TERM INCENTIVE TRENDS SHORT-TERM INCENTIVE, MEDIAN TARGET INCENTIVE AS A PERCENTAGE OF BASE SALARY BY EMPLOYEE LEVEL, MIDDLE EAST MIDDLE EAST

PROFESSIONAL

PARA-PROFESSIONAL

EXECUTIVE

MANAGEMENT

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Bahrain

25

18

17

15

13

15

Iran

20

20

16

15

13

10

Iraq*

30

18

15

15

13

–

Israel*

25

15

25

12

8

8

Jordan

20

15

12

13

10

10

Kuwait

22

17

10

15

13

10

Lebanon

25

17

15

15

10

9

Oman*

25

15

20

13

12

6

Qatar

20

17

15

15

13

8

Saudi Arabia

25

18

17

15

14

15

United Arab Emirates

25

18

15

10

10

10

Yemen*

15

13

10

10

9

9

NOTE: Availability of data for some markets was limited at the time of release. For countries indicated with an asterisk, short-term incentive data reflect information reported in 2015.

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SHORT-TERM INCENTIVE TRENDS SHORT-TERM INCENTIVE, MEDIAN TARGET INCENTIVE AS A PERCENTAGE OF BASE SALARY BY EMPLOYEE LEVEL, WESTERN EUROPE WESTERN EUROPE

EXECUTIVE

MANAGEMENT

Austria

25

Belgium

PROFESSIONAL

PARA-PROFESSIONAL

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

15

10

10

5

4

25

15

12

9

5

4

Cyprus

10

10

15

10

–

–

Denmark

25

15

10

8

5

4

Finland

20

13

10

8

5

5

France

20

11

15

8

–

–

Germany

25

15

15

10

5

5

Greece

23

15

15

9

7

6

Ireland

24

15

10

10

8

6

Italy

25

20

–

–

–

–

Luxembourg

30

15

12

10

6

–

Malta

20

15

12

14

16

5

Netherlands

25

15

10

8

5

5

Norway

25

15

10

8

7

6

Portugal

24

15

10

10

8

5

Spain

20

15

15

10

7

5

Sweden

25

15

10

8

7

6

Switzerland

30

15

13

9

6

5

United Kingdom

25

15

13

10

6

5

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AFRICA

ALGERIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 3.9%

Inflation, annual average change

2016: 3.6%

2015: 4.8%

2017: 2.9%

Unemployment

2016: 5.9%

2015: 11.2%

2017: 4.8%

2016: 9.9%

2017: 10.4%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

6.9%

6.9%

6.9%

6.7%

6.7%

6.7%

Executive

6.9%

6.7%

6.7%

6.7%

6.5%

6.5%

Management — Nonsales

6.9%

6.9%

6.7%

6.5%

6.9%

6.5%

Professional — Sales

6.9%

6.9%

6.9%

6.5%

6.7%

6.7%

Professional — Nonsales

6.9%

6.7%

6.7%

6.5%

6.5%

6.5%

Para-professional — White collar

6.9%

6.7%

6.7%

6.5%

6.5%

6.5%

Para-professional — Blue collar

6.9%

6.5%

6.9%

6.5%

6.4%

6.7%

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ALGERIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

10%

3%

3%

Executive

11%

3%

3%

Management — Nonsales

10%

3%

3%

Professional — Sales

10%

3%

3%

Professional — Nonsales

10%

3%

3%

Para-professional — White collar

10%

3%

3%

Para-professional — Blue collar

11%

3%

3%

MANDATORY PAY INCREASE SCHEMES Algeria does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

98%

96%

77%

79%

-

-

Median target bonus (% of base pay)

25%

15%

23%

12%

-

-

Median maximum bonus (% of base pay)

30%

30%

30%

20%

-

-

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ALGERIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Marketing

All levels

Sales

All levels

Project Engineering

All levels

Sales & Marketing

All levels

Sales

All levels

Top Management

All levels

Top Management

Executive

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

31

August 1, 2015

Salary Movement Snapshot, September 2016

36

August 1, 2016

Algeria Total Remuneration Survey, May 2016

81

May 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

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ANGOLA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 3.0%

Inflation, annual average change

2016: 0.0%

2015: 10.3%

2017: 1.5%

Unemployment

2016: 33.7%

2015: 7.6%

2017: 38.3%

2016: 7.5%

2017: 7.5%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.8%

8.1%

8.5%

6.3%

7.3%

8.1%

Executive

7.5%

8.1%

8.5%

4.7%

7.8%

8.1%

Management — Nonsales

7.8%

8.0%

8.3%

6.3%

7.8%

8.1%

Professional — Sales

7.5%

8.0%

8.3%

4.7%

7.8%

8.1%

Professional — Nonsales

7.8%

8.0%

8.3%

6.3%

7.8%

8.1%

Para-professional — White collar

7.5%

8.1%

8.5%

4.7%

8.0%

8.2%

Para-professional — Blue collar

7.3%

8.1%

8.5%

3.0%

8.0%

8.2%

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ANGOLA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

29%

22%

21%

Executive

31%

22%

21%

Management — Nonsales

29%

17%

14%

Professional — Sales

31%

17%

14%

Professional — Nonsales

29%

17%

14%

Para-professional — White collar

31%

18%

15%

Para-professional — Blue collar

33%

18%

15%

MANDATORY PAY INCREASE SCHEMES Angola does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

100%

81%

84%

74%

69%

Median target bonus (% of base salary)

20%

20%

19%

12%

8%

13%

Median maximum bonus (% of base salary)

30%

25%

25%

18%

16%

18%

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ANGOLA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

17

August 1, 2015

Salary Movement Snapshot, September 2016

19

August 1, 2016

Angola Total Remuneration Survey, April 2016

51

April 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

BOTSWANA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: -0.3%

Inflation, annual average change

2016: 3.1%

2015: 3.0%

2017: 4.0%

Unemployment

2016: 3.2%

2015: 18.6%

2017: 3.5%

2016: 19.0%

2017: 19.3%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.0%

6.0%

6.6%

7.0%

5.9%

5.9%

Executive

6.0%

6.0%

7.0%

6.0%

5.9%

6.5%

Management — Nonsales

6.0%

6.0%

6.0%

6.0%

5.9%

6.0%

Professional — Sales

6.0%

6.0%

6.0%

6.0%

5.9%

6.0%

Professional — Nonsales

6.0%

6.0%

6.0%

6.0%

5.9%

6.0%

Para-professional — White collar

6.5%

6.3%

6.0%

6.5%

6.0%

6.0%

Para-professional — Blue collar

6.5%

6.3%

6.0%

6.5%

6.0%

6.0%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

BOTSWANA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

0%

18%

14%

Executive

–

18%

13%

Management — Nonsales

–

18%

13%

Professional — Sales

–

18%

13%

Professional — Nonsales

–

18%

13%

Para-professional — White collar

–

20%

13%

Para-professional — Blue collar

–

20%

13%

All employees

MANDATORY PAY INCREASE SCHEMES Botswana does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

100%

92%

92%

92%

92%

Median target bonus (% of base pay)

19%

15%

13%

11%

11%

10%

Median maximum bonus (% of base pay)

23%

20%

20%

20%

16%

15%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

BOTSWANA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Botswana Total Remuneration Survey, April 2015

14

April 1, 2015

Salary Movement Snapshot, June 2016

11

May 1, 2016

Botswana Total Remuneration Survey, July 2016

37

July 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

CAMEROON

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 5.8%

Inflation, annual average change

2016: 4.8%

2015: 2.8%

2017: 4.2%

Unemployment

2016: 2.2%

2015: 4.6%

2017: 2.2%

2016: 4.7%

2017: 4.8%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

4.3%

4.9%

4.5%

4.0%

4.9%

4.5%

Executive

4.5%

4.9%

4.5%

4.3%

4.9%

4.5%

Management — Nonsales

4.3%

4.9%

4.5%

4.0%

4.9%

4.5%

Professional — Sales

4.5%

4.9%

4.5%

4.3%

4.9%

4.5%

Professional — Nonsales

4.3%

4.9%

4.5%

4.0%

4.9%

4.5%

Para-professional — White collar

4.5%

4.9%

4.5%

4.3%

4.9%

4.5%

Para-professional — Blue collar

4.3%

4.9%

4.5%

4.0%

4.9%

4.5%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

CAMEROON

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

9%

0%

0%

Executive

10%

0%

0%

Management — Nonsales

9%

0%

0%

Professional — Sales

10%

0%

0%

Professional — Nonsales

9%

0%

0%

Para-professional — White collar

10%

0%

0%

Para-professional — Blue collar

9%

0%

0%

MANDATORY PAY INCREASE SCHEMES Cameroon does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

98%

98%

78%

90%

78%

72%

Median target bonus (% of salary pay)

20%

15%

20%

10%

10%

8%

Median maximum bonus (% of salary pay)

25%

21%

30%

15%

15%

14%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

CAMEROON

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Cameroon Total Remuneration Survey, June 2016

54

June 1, 2016

Salary Movement Snapshot, June 2015

11

May 1, 2016

Salary Movement Snapshot, September 2016

12

August 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

CÔTE D'IVOIRE

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 8.5%

Inflation, annual average change

2016: 8.0%

2015: 1.2%

2017: 8.0%

Unemployment

2016: 1.0%

2015: 9.5%

2017: 1.5%

2016: 9.5%

2017: 9.4%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

4.7%

4.5%

4.0%

4.7%

4.1%

4.0%

Executive

4.8%

4.4%

4.0%

4.8%

4.1%

4.0%

Management — Nonsales

4.8%

4.3%

4.0%

4.8%

4.0%

4.0%

Professional — Sales

4.8%

4.5%

4.0%

4.8%

4.1%

4.0%

Professional — Nonsales

4.8%

4.5%

4.0%

4.8%

4.1%

4.0%

Para-professional — White collar

4.1%

4.5%

4.0%

4.1%

4.1%

4.0%

Para-professional — Blue collar

4.1%

4.3%

4.0%

4.1%

4.0%

4.0%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

CÔTE D'IVOIRE

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

7%

14%

6%

Executive

15%

15%

6%

Management — Nonsales

7%

14%

6%

Professional — Sales

8%

14%

6%

Professional — Nonsales

7%

14%

6%

Para-professional — White collar

7%

14%

6%

Para-professional — Blue collar

7%

16%

6%

MANDATORY PAY INCREASE SCHEMES Côte d'Ivoire does not have a mandatory pay increase policy. However, minimum mandatory base salaries are published and updated in “Collective Agreements” (Conventions Collectives) which are drafted for each sector of the economy. Therefore an increase in the Mandatory Base Salary would imply a mandatory salary increase. These base salary reviews are not necessarily done annually.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

98%

70%

96%

85%

88%

Median target bonus (% of base pay)

18%

15%

13%

10%

13%

10%

Median maximum bonus (% of base pay)

25%

25%

25%

20%

20%

20%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

CÔTE D'IVOIRE

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

14

August 1, 2015

Ivory Coast Total Remuneration Survey, July 2016

63

July 1, 2016

Salary Movement Snapshot, September 2016

21

August 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

DEMOCRATIC REPUBLIC OF CONGO

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.9%

Inflation, annual average change

2016: 3.9%

2015: 1.0%

2017: 4.2%

Unemployment

2016: 1.7%

2015: 3.8%

2017: 2.7%

2016: 3.8%

2017: 3.8%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

4.0%

4.4%

4.9%

4.0%

4.4%

4.4%

Executive

4.3%

4.0%

4.7%

4.3%

4.0%

4.1%

Management — Nonsales

5.0%

4.2%

4.9%

5.0%

4.2%

4.4%

Professional — Sales

5.0%

5.0%

4.9%

5.0%

5.0%

4.4%

Professional — Nonsales

5.0%

5.0%

4.9%

5.0%

5.0%

4.4%

Para-professional — White collar

4.8%

4.4%

4.9%

4.8%

4.4%

4.4%

Para-professional — Blue collar

4.8%

4.4%

4.9%

4.8%

4.4%

4.4%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

DEMOCRATIC REPUBLIC OF CONGO

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

0%

10%

14%

Executive

0%

11%

21%

Management — Nonsales

0%

10%

14%

Professional — Sales

0%

10%

14%

Professional — Nonsales

0%

10%

14%

Para-professional — White collar

0%

10%

14%

Para-professional — Blue collar

0%

10%

14%

MANDATORY PAY INCREASE SCHEMES Democratic Republic of Congo does not have a mandatory pay increase policy. However, minimum mandatory base salaries are published and updated in “Collective Agreements” (Conventions Collectives) which are drafted for each sector of the economy. Therefore an increase in the Mandatory Base Salary would imply a mandatory salary increase. These base salary reviews are not necessarily done annually.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

100%

92%

96%

100%

87%

Median target bonus (% of base pay)

21%

19%

15%

11%

10%

10%

Median maximum bonus (% of base pay)

28%

28%

30%

20%

20%

20%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

DEMOCRATIC REPUBLIC OF CONGO

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Democratic Republic of Congo Total Remuneration Survey, June 2015

42

June 1, 2015

Salary Movement Snapshot, September 2016

10

August 1, 2016

Democratic Republic of Congo Total Remuneration Survey, April 2016

42

April 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

EGYPT

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 4.2%

Inflation, annual average change

2016: 3.8%

2015: 11.0%

2017: 4.0%

Unemployment

2016: 10.2%

2015: 12.9%

2017: 18.2%

2016: 12.7%

2017: 12.3%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

10.0%

10.0%

10.0%

10.0%

10.0%

10.0%

Executive

10.0%

10.0%

10.0%

10.0%

10.0%

10.0%

Management — Nonsales

10.0%

10.0%

10.0%

10.0%

10.0%

10.0%

Professional — Sales

10.0%

10.0%

10.0%

10.0%

10.0%

10.0%

Professional — Nonsales

10.0%

10.0%

10.0%

10.0%

10.0%

10.0%

Para-professional — White collar

10.0%

10.0%

10.0%

10.0%

10.0%

10.0%

Para-professional — Blue collar

10.0%

10.0%

10.0%

10.0%

10.0%

10.0%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

EGYPT

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

6%

2%

2%

Executive

6%

2%

2%

Management — Nonsales

6%

2%

2%

Professional — Sales

6%

2%

2%

Professional — Nonsales

6%

2%

2%

Para-professional — White collar

6%

2%

2%

Para-professional — Blue collar

6%

2%

2%

MANDATORY PAY INCREASE SCHEMES Egypt does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

97%

69%

89%

76%

71%

Median target bonus (% of base pay)

20%

15%

15%

10%

10%

8%

Median maximum bonus (% of base pay)

30%

23%

20%

16%

16%

14%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

EGYPT

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

Professional

Engineering

All levels

Sales

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

71

August 2015

Salary Movement Snapshot, September 2016

66

August 1, 2016

Egypt Total Remuneration survey, May 2016

105

May 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

119

Global Compensation Planning Report — October Update

ETHIOPIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 10.2%

Inflation, annual average change

2016: 6.5%

2015: 10.1%

2017: 7.5%

Unemployment

2016: 7.7%

2015: 5.5%

2017: 8.2%

2016: 5.6%

2017: 5.6%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

15.0%

10.9%

10.9%

15.0%

10.9%

10.9%

Executive

10.0%

10.4%

10.3%

10.0%

10.0%

10.0%

Management — Nonsales

15.0%

11.0%

10.8%

15.0%

11.0%

10.8%

Professional — Sales

13.8%

10.9%

10.9%

13.8%

10.9%

10.9%

Professional — Nonsales

13.8%

10.9%

10.9%

13.8%

10.9%

10.9%

Para-professional — White collar

15.0%

10.9%

10.8%

15.0%

10.9%

10.8%

Para-professional — Blue collar

15.0%

11.3%

10.8%

15.0%

11.3%

10.8%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

ETHIOPIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

3%

0%

0%

Executive

–

8%

8%

Management — Nonsales

–

0%

0%

Professional — Sales

–

7%

0%

Professional — Nonsales

–

0%

0%

Para-professional — White collar

–

0%

0%

Para-professional — Blue collar

–

0%

0%

All employees

MANDATORY PAY INCREASE SCHEMES Ethiopia does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

100%

100%

100%

100%

100%

Median target bonus (% of base pay)

20%

15%

15%

11%

10%

12%

Median maximum bonus (% of base pay)

28%

25%

25%

23%

21%

23%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

ETHIOPIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Ethiopia Total Remuneration Survey, June 2016

38

June 1, 2016

Salary Movement Snapshot, June 2016

13

May 1, 2016

Salary Movement Snapshot, September 2016

13

August 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

GABON

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 4.0%

Inflation, annual average change

2016: 3.2%

2015: 0.1%

2017: 4.5%

Unemployment

2016: 2.5%

2015: 20.5%

2017: 2.5%

2016: 20.5%

2017: 20.3%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

4.2%

3.3%

3.0%

1.8%

2.6%

2.9%

-

3.3%

3.0%

0.0%

2.6%

2.9%

Management — Nonsales

4.2%

3.3%

3.0%

1.8%

2.6%

2.9%

Professional — Sales

4.2%

3.3%

3.0%

1.8%

2.6%

2.9%

Professional — Nonsales

4.2%

3.3%

3.0%

1.8%

2.6%

2.9%

Para-professional — White collar

4.2%

3.3%

3.0%

1.8%

2.6%

2.9%

Para-professional — Blue collar

4.5%

3.3%

3.0%

2.0%

2.6%

2.9%

All employees Executive

© 2016 Mercer LLC.

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GABON

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

38%

33%

22%

Executive

57%

33%

22%

Management — Nonsales

38%

33%

22%

Professional — Sales

38%

33%

22%

Professional — Nonsales

38%

33%

22%

Para-professional — White collar

38%

33%

22%

Para-professional — Blue collar

43%

33%

22%

MANDATORY PAY INCREASE SCHEMES Gabon does not have a mandatory pay increase policy However, minimum mandatory base salaries are published and updated in “Collective Agreements” (Conventions Collectives) which are drafted for each sector of the economy. Therefore an increase in the Mandatory Base Salary would imply a mandatory salary increase. These base salary reviews are not necessarily done annually.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

95%

96%

88%

96%

91%

90%

Median target bonus (% of base pay)

21%

16%

10%

10%

10%

10%

Median maximum bonus (% of base pay)

50%

28%

20%

20%

42%

20%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

GABON

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

8

August 1, 2015

Gabon Total Remuneration Survey, June 2016

36

June 1, 2016

Salary Movement Snapshot, September 2016

9

August 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

GHANA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 3.9%

Inflation, annual average change

2016: 3.3%

2015: 17.2%

2017: 7.4%

Unemployment

2016: 17.0%

2015: 6.3%

2017: 10.0%

2016: 6.4%

2017: 6.4%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

10.4%

12.9%

11.6%

10.2%

11.1%

11.6%

Executive

10.0%

13.0%

11.8%

8.9%

11.1%

11.6%

Management — Nonsales

10.7%

12.9%

12.0%

10.4%

11.1%

12.0%

Professional — Sales

10.7%

12.9%

12.0%

10.4%

11.1%

12.0%

Professional — Nonsales

10.7%

12.9%

11.8%

10.4%

11.1%

11.8%

Para-professional — White collar

10.7%

11.9%

12.0%

10.4%

11.0%

12.0%

Para-professional — Blue collar

10.4%

11.9%

12.0%

10.2%

11.0%

12.0%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

GHANA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

4%

11%

0%

Executive

13%

14%

3%

Management — Nonsales

4%

11%

0%

Professional — Sales

4%

11%

0%

Professional — Nonsales

4%

11%

0%

Para-professional — White collar

4%

11%

0%

Para-professional — Blue collar

4%

11%

0%

MANDATORY PAY INCREASE SCHEMES Ghana does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

93%

100%

81%

95%

86%

84%

Median target bonus (% of base pay)

23%

16%

15%

11%

10%

12%

Median maximum bonus (% of base pay)

36%

25%

25%

19%

17%

25%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

GHANA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Ghana Total Remuneration Survey, June 2016

100

June 1, 2016

Salary Movement Snapshot, September 2015

28

August 1, 2015

Salary Movement Snapshot, September 2016.

37

August 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

GUINEA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 0.1%

Inflation, annual average change

2016: 3.8%

2015: 8.2%

2017: 4.4%

Unemployment

2016: 8.2%

2015: 1.8%

2017: 8.1%

2016: 1.8%

2017: 1.7%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

9.5%

9.5%

8.2%

9.5%

7.5%

8.2%

Executive

5.0%

7.5%

8.0%

5.0%

1.2%

7.0%

Management — Nonsales

5.0%

9.0%

8.2%

5.0%

7.5%

8.2%

Professional — Sales

10.2%

7.5%

8.0%

10.2%

4.2%

8.0%

Professional — Nonsales

10.2%

9.0%

8.2%

10.2%

6.0%

8.2%

Para-professional — White collar

9.5%

9.0%

8.2%

9.5%

6.0%

8.2%

Para-professional — Blue collar

9.5%

9.0%

8.2%

9.5%

6.0%

8.2%

Note: Data are for Conakry, Guinea.

© 2016 Mercer LLC.

129

Global Compensation Planning Report — October Update

GUINEA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

0%

25%

0%

Executive

0%

50%

13%

Management — Nonsales

0%

25%

0%

Professional — Sales

0%

33%

0%

Professional — Nonsales

0%

29%

0%

Para-professional — White collar

0%

29%

0%

Para-professional — Blue collar

0%

29%

0%

MANDATORY PAY INCREASE SCHEMES Guinea does not have a mandatory pay increase policy. However, minimum mandatory base salaries are published and updated in “Collective Agreements” (Conventions Collectives) which are drafted for each sector of the economy. Therefore an increase in the Mandatory Base Salary would imply a mandatory salary increase. These base salary reviews are not necessarily done annually.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

91%

92%

80%

91%

100%

100%

Median target bonus (% of base pay)

16%

13%

26%

11%

10%

10%

Median maximum bonus (% of base pay)

29%

27%

28%

25%

25%

20%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

GUINEA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Guinea Total Remuneration Survey, August 2014

–

September 1, 2015

Guinea Total Remuneration Survey, August 2016

18

September 1, 2016

Salary Movement Snapshot, June 2016

8

May 1, 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

© 2016 Mercer LLC.

131

Global Compensation Planning Report — October Update

KENYA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 5.6%

Inflation, annual average change

2016: 6.0%

2015: 6.6%

2017: 6.1%

Unemployment

2016: 6.2%

2015: 9.2%

2017: 5.5%

2016: 9.2%

2017: 9.1%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

8.0%

8.0%

7.6%

7.9%

7.9%

7.5%

Executive

8.0%

7.9%

7.6%

8.0%

7.8%

7.5%

Management — Nonsales

8.0%

7.9%

7.6%

8.0%

7.8%

7.5%

Professional — Sales

7.8%

8.0%

7.6%

7.7%

7.9%

7.5%

Professional — Nonsales

8.0%

8.0%

7.6%

8.0%

7.9%

7.5%

Para-professional — White collar

8.0%

8.0%

7.6%

8.0%

7.9%

7.5%

Para-professional — Blue collar

8.0%

7.8%

7.5%

7.9%

7.7%

7.4%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

KENYA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

3%

5%

5%

Executive

3%

5%

5%

Management — Nonsales

3%

5%

5%

Professional — Sales

3%

5%

5%

Professional — Nonsales

3%

5%

5%

Para-professional — White collar

3%

5%

5%

Para-professional — Blue collar

3%

5%

5%

MANDATORY PAY INCREASE SCHEMES Kenya does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

99%

99%

79%

89%

78%

72%

Median target bonus (% of base salary)

23%

15%

13%

10%

10%

10%

Median maximum bonus (% of base salary)

30%

25%

24%

19%

18%

16%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

KENYA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

40

August 1, 2015

Kenya Total Remuneration Survey, July 2016

119

July 1, 2016

Salary Movement Snapshot, September 2016.

45

August 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

LIBYA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

–

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: -6.4%

Inflation, annual average change

2016: -3.3%

2015: 14.1%

2017: 13.7%

Unemployment

2016: 14.2%

2015: 20.6%

2017: 12.5%

2016: 20.6%

2017: 20.6%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

5.0%

5.3%

–

5.0%

5.0%

–

Executive

5.0%

5.3%

–

5.0%

5.0%

–

Management — Nonsales

5.0%

5.3%

–

5.0%

5.0%

–

Professional — Sales

5.0%

5.3%

–

5.0%

5.0%

–

Professional — Nonsales

5.0%

5.3%

–

5.0%

5.0%

–

Para-professional — White collar

5.0%

5.3%

–

5.0%

5.0%

–

Para-professional — Blue collar

5.0%

5.3%

–

5.0%

5.0%

–

IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated missing content will be available to download on November 30.

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

LIBYA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

–

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

21%

27%

–

Executive

23%

27%

–

Management — Nonsales

21%

27%

–

Professional — Sales

23%

27%

–

Professional — Nonsales

21%

27%

–

Para-professional — White collar

21%

27%

–

Para-professional — Blue collar

23%

27%

–

MANDATORY PAY INCREASE SCHEMES Libya does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

75%

80%

83%

100%

–

–

Median target bonus (% of base pay)

–

–

–

15%

–

–

Median maximum bonus (% of base pay)

–

–

–

25%

–

–

IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated content will be available to download on November 30. Short-term incentive data currently reflect information reported in 2015.

© 2016 Mercer LLC.

136

Global Compensation Planning Report — October Update

LIBYA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

–

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

Sales and Marketing

All levels

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, June 2015

14

May 1, 2015

Libya Total Remuneration Survey, July 2015

13

July 1, 2015

Salary Movement Snapshot, June 2016

11

May 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

MALAWI

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 3.0%

Inflation, annual average change

2016: 2.7%

2015: 21.9%

2017: 4.5%

Unemployment

2016: 19.8%

2015: 6.7%

2017: 13.9%

2016: 6.8%

2017: 6.8%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

12.5%

15.5%

15.3%

12.5%

15.5%

15.3%

Executive

13.4%

17.0%

17.0%

13.4%

17.0%

17.0%

Management — Nonsales

12.5%

15.5%

15.3%

12.5%

15.5%

15.3%

Professional — Sales

13.0%

15.5%

15.3%

13.0%

15.5%

15.3%

Professional — Nonsales

12.5%

15.5%

15.3%

12.5%

15.5%

15.3%

Para-professional — White collar

12.5%

17.0%

17.0%

12.5%

17.0%

17.0%

Para-professional — Blue collar

13.0%

17.0%

17.0%

13.0%

17.0%

17.0%

© 2016 Mercer LLC.

138

Global Compensation Planning Report — October Update

MALAWI

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

0%

0%

0%

Executive

0%

0%

0%

Management — Nonsales

0%

0%

0%

Professional — Sales

0%

0%

0%

Professional — Nonsales

0%

0%

0%

Para-professional — White collar

0%

0%

0%

Para-professional — Blue collar

0%

0%

0%

MANDATORY PAY INCREASE SCHEMES Malawi does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

100%

100%

100%

96%

96%

Median target bonus (% of base pay)

15%

15%

14%

10%

10%

10%

Median maximum bonus (% of base pay)

28%

20%

20%

20%

20%

21%

© 2016 Mercer LLC.

139

Global Compensation Planning Report — October Update

MALAWI

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

8

August 1, 2015

Malawi Total Remuneration Survey, May 2016

36

May 1, 2016

Salary Movement Snapshot, June 2016

11

May 1, 2016

Salary Movement Snapshot, June 2016

8

August 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

140

Global Compensation Planning Report — October Update

MAURITIUS

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 3.5%

Inflation, annual average change

2016: 3.5%

2015: 1.3%

2017: 3.9%

Unemployment

2016: 1.5%

2015: 7.9%

2017: 2.1%

2016: 7.5%

2017: 7.2%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

5.5%

5.0%

5.0%

5.5%

5.0%

5.0%

Executive

5.6%

5.0%

5.0%

5.6%

5.0%

5.0%

Management — Nonsales

5.7%

5.0%

5.0%

5.7%

5.0%

5.0%

Professional — Sales

5.7%

5.0%

5.0%

5.7%

5.0%

5.0%

Professional — Nonsales

5.7%

5.0%

5.0%

5.7%

5.0%

5.0%

Para-professional — White collar

5.7%

5.0%

5.0%

5.7%

5.0%

5.0%

Para-professional — Blue collar

5.7%

5.0%

5.0%

5.7%

5.0%

5.0%

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141

Global Compensation Planning Report — October Update

MAURITIUS

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

0%

0%

0%

Executive

0%

0%

0%

Management — Nonsales

0%

0%

0%

Professional — Sales

0%

0%

0%

Professional — Nonsales

0%

0%

0%

Para-professional — White collar

0%

0%

0%

Para-professional — Blue collar

0%

0%

0%

MANDATORY PAY INCREASE SCHEMES There is a government-imposed mandatory increase that is linked to inflation, but it is not based solely on cost of living adjustment (COLA). These increases are determined at government’s discretion and may vary from COLA. At times, these increases are provided as a flat rate and in some cases as a percentage of basic salary (ABS). These increases are provided at the end of the financial year, which is changed from January end to June end. However, the change in the financial year has not been communicated for the mandatory increase.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

100%

63%

95%

90%

88%

Median target bonus (% of base pay)

20%

15%

15%

12%

10%

10%

Median maximum bonus (% of base pay)

33%

29%

24%

25%

25%

25%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

MAURITIUS

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

9

August 1, 2015

Mauritius Total Remuneration Survey, May 2016

40

May 1, 2016

Salary Movement Snapshot, September 2016

14

August 1, 2015

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

MOROCCO

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 4.5%

Inflation, annual average change

2016: 1.8%

2015: 1.5%

2017: 4.8%

Unemployment

2016: 1.3%

2015: 9.7%

2017: 1.3%

2016: 10.2%

2017: 10.1%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

4.6%

4.2%

4.4%

4.5%

4.2%

4.4%

Executive

4.5%

4.2%

4.5%

4.5%

4.2%

4.5%

Management — Nonsales

4.5%

4.2%

4.5%

4.4%

4.2%

4.5%

Professional — Sales

4.5%

4.2%

4.5%

4.5%

4.2%

4.5%

Professional — Nonsales

4.5%

4.2%

4.4%

4.5%

4.2%

4.4%

Para-professional — White collar

4.6%

4.2%

4.5%

4.5%

4.2%

4.5%

Para-professional — Blue collar

4.9%

4.2%

4.5%

4.8%

4.2%

4.5%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

MOROCCO

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

5%

0%

0%

Executive

5%

0%

0%

Management — Nonsales

5%

0%

0%

Professional — Sales

5%

0%

0%

Professional — Nonsales

5%

0%

0%

Para-professional — White collar

5%

0%

0%

Para-professional — Blue collar

5%

0%

0%

MANDATORY PAY INCREASE SCHEMES Morocco does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

99%

99%

79%

86%

77%

77%

Median target bonus (% of base pay)

20%

15%

13%

10%

8%

8%

Median maximum bonus (% of base pay)

25%

20%

17%

15%

11%

11%

© 2016 Mercer LLC.

145

Global Compensation Planning Report — October Update

MOROCCO

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Legal

All levels

Sales and Marketing

All levels

Sales

All levels

Sales

All levels

Sales and Marketing

All levels

Supply and Logistics

All levels

Marketing

All levels

Repair and Maintenance

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

45

August 1, 2015

Salary Movement Snapshot, September 2016

40

August 1, 2016

Morocco Total Remuneration Survey, May 2016

126

May 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

146

Global Compensation Planning Report — October Update

MOZAMBIQUE

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.6%

Inflation, annual average change

2016: 4.5%

2015: 2.4%

2017: 5.5%

Unemployment

2016: 16.7%

2015: 22.3%

2017: 15.5%

2016: 22.1%

2017: 22.1%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

5.0%

6.5%

6.8%

5.0%

6.3%

6.5%

Executive

5.0%

6.3%

6.5%

5.0%

6.0%

6.5%

Management — Nonsales

5.0%

6.5%

6.8%

5.0%

6.3%

6.5%

Professional — Sales

5.0%

6.3%

6.5%

5.0%

6.0%

6.5%

Professional — Nonsales

5.0%

6.5%

6.8%

5.0%

6.3%

6.5%

Para-professional — White collar

5.0%

6.3%

6.5%

5.0%

6.0%

6.5%

Para-professional — Blue collar

5.0%

6.3%

6.5%

5.0%

6.0%

6.5%

© 2016 Mercer LLC.

147

Global Compensation Planning Report — October Update

MOZAMBIQUE

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

17%

7%

8%

Executive

18%

8%

8%

Management — Nonsales

17%

7%

8%

Professional — Sales

17%

8%

8%

Professional — Nonsales

17%

7%

8%

Para-professional — White collar

17%

8%

8%

Para-professional — Blue collar

17%

8%

8%

MANDATORY PAY INCREASE SCHEMES Mozambique does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

96%

100%

81%

93%

93%

88%

Median target bonus (% of base pay)

22%

15%

11%

10%

9%

9%

Median maximum bonus (% of base pay)

30%

25%

20%

16%

16%

16%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

MOZAMBIQUE

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

12

August 1, 2015

Mozambique Total Remuneration Survey, June 2016

48

June 1, 2016

Salary Movement Snapshot, September 2016

14

August 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

NAMIBIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

–

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 5.3%

Inflation, annual average change

2016: 4.2%

2015: 3.4%

2017: 5.3%

Unemployment

2016: 6.6%

2015: 25.5%

2017: 6.0%

2016: 24.7%

2017: 24.2%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

6.8%

7.5%

–

6.7%

7.3%

–

Executive

6.7%

7.5%

–

6.5%

7.3%

–

Management — Nonsales

6.8%

7.5%

–

6.7%

7.3%

–

Professional — Sales

6.8%

7.5%

–

6.7%

7.3%

–

Professional — Nonsales

6.8%

7.5%

–

6.7%

7.3%

–

Para-professional — White collar

6.8%

7.5%

–

6.7%

7.3%

–

Para-professional — Blue collar

6.7%

7.5%

–

6.5%

7.3%

–

IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated missing content will be available to download on November 11.

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

NAMIBIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

–

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

10%

13%

–

Executive

11%

13%

–

Management — Nonsales

10%

13%

–

Professional — Sales

10%

13%

–

Professional — Nonsales

10%

13%

–

Para-professional — White collar

10%

13%

–

Para-professional — Blue collar

11%

13%

–

MANDATORY PAY INCREASE SCHEMES Namibia does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

50%

60%

62%

62%

62%

61%

Median target bonus (% of base pay)

16%

16%

16%

16%

16%

–

Median maximum bonus (% of base pay)

25%

25%

25%

25%

25%

12%

*IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated content will be available to download on November 11. Short-term incentive data currently reflect information reported in 2015.

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

NAMIBIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

–

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, June 2015

10

May 1, 2015

Salary Movement Snapshot, December 2015

9

November 1, 2015

Salary Movement Snapshot, June 2016

8

May 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

NIGERIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 2.7%

Inflation, annual average change

2016: -1.7%

2015: 9.0%

2017: 0.6%

Unemployment

2016: 15.4%

2015: 5.8%

2017: 17.1%

2016: 6.3%

2017: 6.6%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

9.8%

9.5%

9.7%

9.6%

9.5%

9.7%

Executive

9.7%

9.5%

9.7%

9.3%

9.5%

9.6%

Management — Nonsales

9.9%

9.5%

9.7%

9.6%

9.5%

9.7%

Professional — Sales

9.8%

9.5%

9.7%

9.6%

9.5%

9.6%

Professional — Nonsales

9.9%

9.5%

10.0%

9.6%

9.5%

9.7%

Para-professional — White collar

9.8%

9.5%

10.0%

9.6%

9.5%

9.7%

Para-professional — Blue collar

9.6%

9.5%

9.9%

9.0%

9.5%

9.7%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

NIGERIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

13%

4%

4%

Executive

14%

4%

5%

Management — Nonsales

13%

6%

4%

Professional — Sales

13%

2%

2%

Professional — Nonsales

13%

4%

4%

Para-professional — White collar

13%

4%

4%

Para-professional — Blue collar

15%

4%

4%

MANDATORY PAY INCREASE SCHEMES Nigeria does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

97%

98%

73%

88%

67%

63%

Median target bonus (% of base pay)

20%

18%

13%

13%

10%

10%

Median maximum bonus (% of base pay)

30%

20%

20%

17%

15%

15%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

NIGERIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

39

August 1, 2015

Nigeria Total Remuneration Survey, June 2016

152

June 1, 2016

Salary Movement Snapshot, September 2016

53

August 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

155

Global Compensation Planning Report — October Update

RWANDA

Data for 2015

Actual

Data for 2016

Forecast

Data for 2017

–

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.9%

Inflation, annual average change

2016: 6.0%

2015: 2.5%

2017: 6.0%

Unemployment

2016: 5.3%

2015: 2.4%

2017: 4.9%

2016: 2.2%

2017: 2.2%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

6.0%

7.0%

–

6.0%

7.0%

–

Executive

6.0%

6.0%

–

6.0%

6.0%

–

Management — Nonsales

6.0%

6.5%

–

6.0%

6.5%

–

Professional — Sales

6.0%

6.5%

–

6.0%

6.5%

–

Professional — Nonsales

6.0%

6.5%

–

6.0%

6.5%

–

Para-professional — White collar

6.0%

6.5%

–

6.0%

6.5%

–

Para-professional — Blue collar

6.0%

6.5%

–

6.0%

6.5%

–

IMPORTANT: Availability of data for some markets was limited at the time of release; this market will be updated in GCPR-Online as data become available.

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

RWANDA

Data for 2015

Actual

Data for 2016

Forecast

Data for 2017

–

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

–

–

–

Executive

–

–

–

Management — Nonsales

–

–

–

Professional — Sales

–

–

–

Professional — Nonsales

–

–

–

Para-professional — White collar

–

–

–

Para-professional — Blue collar

–

–

–

Note: Data are not available.

MANDATORY PAY INCREASE SCHEMES Rwanda does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

92%

88%

86%

86%

83%

Median target bonus (% of base pay)

30%

20%

15%

14%

14%

–

Median maximum bonus (% of base pay)

30%

29%

30%

23%

23%

–

IMPORTANT: Availability of data for some markets was limited at the time of release; this market contains data collected in 2015.

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

RWANDA

Data for 2015

Actual

Data for 2016

Forecast

Data for 2017

–

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Rwanda Total Remuneration Survey, June 2015

–

July 1, 2015

Rwanda Total Remuneration Survey, June 2016

17

July 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

158

Global Compensation Planning Report — October Update

SENEGAL

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.5%

Inflation, annual average change

2016: 6.6%

2015: 0.1%

2017: 6.8%

Unemployment

2016: 1.0%

2015: 9.3%

2017: 1.8%

2016: 9.1%

2017: 8.9%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

4.9%

4.8%

4.1%

4.9%

4.5%

4.1%

Executive

4.9%

4.5%

4.0%

4.6%

4.2%

4.0%

Management — Nonsales

4.9%

4.8%

4.1%

4.9%

4.5%

4.1%

Professional — Sales

4.9%

4.8%

4.1%

4.9%

4.5%

4.1%

Professional — Nonsales

4.9%

4.8%

4.1%

4.9%

4.5%

4.1%

Para-professional — White collar

4.9%

4.8%

4.1%

4.9%

4.5%

4.1%

Para-professional — Blue collar

5.0%

4.5%

4.0%

5.0%

4.2%

4.0%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

SENEGAL

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

0%

6%

0%

Executive

8%

7%

0%

Management — Nonsales

0%

6%

0%

Professional — Sales

0%

6%

0%

Professional — Nonsales

0%

6%

0%

Para-professional — White collar

0%

6%

0%

Para-professional — Blue collar

0%

7%

0%

MANDATORY PAY INCREASE SCHEMES Senegal does not have a mandatory pay increase policy. However, minimum mandatory base salaries are published and updated in “Collective Agreements” (Conventions Collectives) which are drafted for each sector of the economy. Therefore an increase in the Mandatory Base Salary would imply a mandatory salary increase. These base salary reviews are not necessarily done annually.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

100%

85%

93%

90%

81%

Median target bonus (% of base pay)

17%

12%

8%

8%

8%

9%

Median maximum bonus (% of base pay)

25%

16%

12%

13%

10%

14%

© 2016 Mercer LLC.

160

Global Compensation Planning Report — October Update

SENEGAL

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

13

August 1, 2015

Salary Movement Snapshot, September 2016

16

August 1, 2016

Senegal Total Remuneration Survey, September 2016

43

August 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

161

Global Compensation Planning Report — October Update

SOUTH AFRICA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 1.3%

Inflation, annual average change

2016: 0.1%

2015: 4.6%

2017: 0.8%

Unemployment

2016: 6.0%

2015: 25.4%

2017: 6.0%

2016: 26.3%

2017: 27.0%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.0%

6.8%

7.0%

7.0%

6.6%

6.9%

Executive

7.0%

6.5%

7.0%

7.0%

6.5%

6.9%

Management — Nonsales

7.0%

6.5%

7.0%

7.0%

6.5%

6.9%

Professional — Sales

7.0%

6.6%

7.0%

7.0%

6.5%

6.9%

Professional — Nonsales

7.0%

6.6%

7.0%

7.0%

6.5%

6.9%

Para-professional — White collar

7.0%

6.6%

7.0%

7.0%

6.5%

6.9%

Para-professional — Blue collar

7.0%

6.6%

7.0%

7.0%

6.5%

6.9%

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SOUTH AFRICA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

5%

8%

9%

Executive

9%

8%

9%

Management — Nonsales

5%

8%

9%

Professional — Sales

5%

8%

9%

Professional — Nonsales

5%

8%

9%

Para-professional — White collar

5%

8%

9%

Para-professional — Blue collar

4%

11%

10%

MANDATORY SALARY INCREASE SCHEMES South Africa does not have a mandatory salary increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

97%

96%

64%

88%

76%

61%

Median target bonus (% of base pay)

20%

15%

12%

10%

8%

8%

Median maximum bonus (% of base pay)

30%

25%

20%

15%

11%

10%

© 2016 Mercer LLC.

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SOUTH AFRICA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Finance

All levels

Industry Specific

All levels

Industry Specific

All levels

Sales

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

106

August 1, 2015

Salary Movement Snapshot, September 2016

46

August 1, 2016

South Africa Total Remuneration Survey, April 2016

214

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

TANZANIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 7.0%

Inflation, annual average change

2016: 7.2%

2015: 5.6%

2017: 7.2%

Unemployment

2016: 5.2%

2015: 3.2%

2017: 5.0%

2016: 3.3%

2017: 3.3%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

6.5%

8.0%

8.0%

6.3%

7.8%

7.0%

Executive

6.5%

8.0%

8.0%

6.3%

7.2%

7.0%

Management — Nonsales

6.6%

8.0%

8.0%

6.5%

7.3%

7.0%

Professional — Sales

6.5%

8.0%

8.0%

6.3%

7.4%

7.0%

Professional — Nonsales

6.5%

8.0%

8.0%

6.3%

8.0%

7.0%

Para-professional — White collar

6.5%

8.0%

8.0%

6.3%

7.8%

7.0%

Para-professional — Blue collar

6.3%

8.0%

8.0%

6.0%

7.8%

7.0%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

TANZANIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

6%

20%

25%

Executive

6%

29%

35%

Management — Nonsales

6%

21%

25%

Professional — Sales

6%

21%

25%

Professional — Nonsales

6%

20%

25%

Para-professional — White collar

6%

21%

25%

Para-professional — Blue collar

6%

21%

25%

MANDATORY PAY INCREASE SCHEMES Tanzania does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

98%

100%

90%

95%

92%

88%

Median target bonus (% of base pay)

20%

15%

13%

13%

10%

10%

Median maximum bonus (% of base pay)

25%

20%

20%

20%

15%

14%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

TANZANIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

–

August 1, 2015

Salary Movement Snapshot, September 2016

25

August 1, 2016

Tanzania Total Remuneration Survey, May 2016

74

May 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

TUNISIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 0.8%

Inflation, annual average change

2016: 1.5%

2015: 4.9%

2017: 2.8%

Unemployment

2016: 3.7%

2015: 15.0%

2017: 3.9%

2016: 14.0%

2017: 13.0%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

6.4%

6.3%

6.3%

6.3%

6.3%

6.3%

Executive

6.2%

6.3%

6.3%

6.0%

6.3%

6.3%

Management — Nonsales

6.4%

6.3%

6.3%

6.3%

6.3%

6.3%

Professional — Sales

6.3%

6.3%

6.3%

6.2%

6.3%

6.3%

Professional — Nonsales

6.3%

6.3%

6.3%

6.2%

6.3%

6.3%

Para-professional — White collar

6.4%

6.3%

6.3%

6.3%

6.3%

6.3%

Para-professional — Blue collar

6.3%

6.2%

6.3%

6.2%

6.2%

6.3%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

TUNISIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

3%

0%

0%

Executive

3%

0%

0%

Management — Nonsales

3%

0%

0%

Professional — Sales

3%

0%

0%

Professional — Nonsales

3%

0%

0%

Para-professional — White collar

3%

0%

0%

Para-professional — Blue collar

3%

0%

0%

MANDATORY PAY INCREASE SCHEMES Tunisia does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

97%

100%

75%

93%

–

–

Median target bonus (% of base pay)

19%

14%

19%

14%

–

–

Median maximum bonus (% of base pay)

25%

21%

30%

23%

–

–

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

TUNISIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Marketing

All levels

Marketing

All levels

Sales

All levels

Sales

All levels

Sales & Margeting

All levels

Supply & Logistics

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

33

August 1, 2015

Salary Movement Snapshot, September 2016

30

August 1, 2016

Tunisia Total Remuneration Survey, May 2016

61

May 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

UGANDA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 4.8%

Inflation, annual average change

2016: 4.9%

2015: 5.5%

2017: 5.5%

Unemployment

2016: 5.5%

2015: 3.6%

2017: 5.1%

2016: 3.5%

2017: 3.4%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

6.4%

8.5%

7.5%

5.9%

8.0%

7.3%

Executive

6.9%

8.0%

7.1%

6.4%

7.8%

7.1%

Management — Nonsales

6.4%

8.0%

7.1%

5.9%

8.0%

7.1%

Professional — Sales

6.4%

8.0%

7.1%

5.9%

8.0%

7.1%

Professional — Nonsales

6.4%

8.0%

7.1%

5.9%

8.0%

7.1%

Para-professional — White collar

6.4%

8.0%

7.1%

5.9%

8.0%

7.1%

Para-professional — Blue collar

6.9%

8.0%

7.1%

6.4%

8.0%

7.1%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

UGANDA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

9%

15%

8%

Executive

10%

23%

17%

Management — Nonsales

9%

15%

8%

Professional — Sales

9%

15%

0%

Professional — Nonsales

9%

15%

0%

Para-professional — White collar

9%

15%

0%

Para-professional — Blue collar

10%

8%

0%

MANDATORY PAY INCREASE SCHEMES Uganda does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

100%

86%

91%

87%

79%

Median target bonus (% of base pay)

18%

12%

10%

10%

10%

9%

Median maximum bonus (% of base pay)

30%

20%

20%

20%

17%

17%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

UGANDA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

11

August 1, 2015

Salary Movement Snapshot, September 2016

13

August 1, 2016

Uganda Total Remuneration Survey, May 2016

53

May 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

ZAMBIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 3.0%

Inflation, annual average change

2016: 3.0%

2015: 10.1%

2017: 4.0%

Unemployment

2016: 19.1%

2015: 10.7%

2017: 9.1%

2016: 11.2%

2017: 11.5%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.2%

7.5%

7.9%

7.2%

7.5%

7.8%

Executive

7.2%

7.8%

8.0%

7.0%

7.5%

7.9%

Management — Nonsales

7.2%

7.5%

7.9%

7.2%

7.5%

7.8%

Professional — Sales

7.4%

7.5%

7.9%

7.4%

7.5%

7.8%

Professional — Nonsales

7.4%

7.5%

7.9%

7.4%

7.5%

7.8%

Para-professional — White collar

7.2%

7.8%

8.0%

7.2%

7.5%

7.9%

Para-professional — Blue collar

7.4%

7.8%

8.0%

7.4%

7.5%

7.9%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

ZAMBIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

0%

19%

5%

Executive

13%

20%

6%

Management — Nonsales

0%

19%

5%

Professional — Sales

0%

19%

5%

Professional — Nonsales

0%

19%

5%

Para-professional — White collar

0%

20%

6%

Para-professional — Blue collar

0%

20%

6%

MANDATORY PAY INCREASE SCHEMES Zambia does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

95%

95%

86%

93%

89%

81%

Median target bonus (% of base pay)

20%

15%

12%

10%

10%

10%

Median maximum bonus (% of base pay)

30%

23%

20%

20%

20%

20%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

ZAMBIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

17

August 1, 2015

Salary Movement Snapshot, September 2016

21

August 1, 2016

Zambia Total Remuneration Survey, March 2016

57

March 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

ZIMBABWE

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 1.1%

Inflation, annual average change

2016: -0.3%

2015: -2.4%

2017: -2.5%

Unemployment

2016: -1.6%

2015: 9.3%

2017: 4.6%

2016: 8.5%

2017: 8.0%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

5.0%

4.8%

4.5%

5.0%

4.8%

4.5%

Executive

3.0%

3.9%

3.8%

3.0%

3.9%

3.8%

Management — Nonsales

3.8%

4.8%

4.5%

3.8%

4.8%

4.5%

Professional — Sales

2.9%

3.9%

3.8%

2.9%

3.9%

3.8%

Professional — Nonsales

2.9%

4.8%

4.5%

2.9%

4.8%

4.5%

Para-professional — White collar

2.8%

3.9%

3.8%

2.8%

3.9%

3.8%

Para-professional — Blue collar

2.8%

3.0%

3.0%

2.8%

3.0%

3.0%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

ZIMBABWE

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

18%

0%

0%

Executive

–

0%

0%

Management — Nonsales

–

0%

0%

Professional — Sales

–

0%

0%

Professional — Nonsales

–

0%

0%

Para-professional — White collar

–

0%

0%

Para-professional — Blue collar

–

0%

0%

All employees

MANDATORY PAY INCREASE SCHEMES Zimbabwe does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

96%

100%

88%

92%

88%

79%

Median target bonus (% of base pay)

25%

20%

14%

11%

10%

10%

Median maximum bonus (% of base pay)

40%

32%

20%

20%

20%

20%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

ZIMBABWE

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2016

9

August 1, 2016

Zimbabwe Total Remuneration Survey, May 2016

35

May 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

AMERICAS

ARGENTINA

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 2.4%

Inflation, annual average change

2016: -1.3%

2015: 28.1%

2017: 3.0%

Unemployment

2016: 40.1%

2015: 7.8%

2017: 21.1%

2016: 8.6%

2017: 8.1%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

32.0%

33.0%

30.0%

32.0%

33.0%

30.0%

Executive

32.0%

33.0%

30.0%

32.0%

33.0%

30.0%

Management — Nonsales

32.0%

33.0%

30.0%

32.0%

33.0%

30.0%

Professional — Sales

32.0%

33.0%

30.0%

32.0%

33.0%

30.0%

Professional — Nonsales

32.0%

33.0%

30.0%

32.0%

33.0%

30.0%

Para-professional — White collar

32.0%

33.0%

30.0%

32.0%

33.0%

30.0%

Para-professional — Blue collar

32.0%

33.0%

30.0%

32.0%

33.0%

30.0%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

ARGENTINA

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

–

–

–

Executive

–

–

–

Management — Nonsales

–

–

–

Professional — Sales

–

–

–

Professional — Nonsales

–

–

–

Para-professional — White collar

–

–

–

Para-professional — Blue collar

–

–

–

Note: Data are not available.

MANDATORY PAY INCREASE SCHEMES There are no mandatory increases, but Argentina has many trade unions that negotiate for salary increases for their unionised employees.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

94%

91%

75%

80%

80%

44%

Median target bonus (% of base pay)

25%

16%

12%

9%

9%

8%

Median actual bonus (% of base pay)

24%

15%

11%

8%

8%

6%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

ARGENTINA

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Economic Trends - Latin America, October 2016

Not applicable

October 2016

Argentina Total Remuneration Survey, May 2016

437

May 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

BOLIVIA

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 4.8%

Inflation, annual average change

2016: 3.7%

2015: 4.1%

2017: 3.9%

Unemployment

2016: 3.9%

2015: 4.0%

2017: 5.1%

2016: 4.0%

2017: 4.0%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

8.5%

6.0%

6.5%

8.5%

6.0%

6.5%

Executive

8.5%

6.0%

6.5%

8.5%

6.0%

6.5%

Management — Nonsales

8.5%

6.0%

6.5%

8.5%

6.0%

6.5%

Professional — Sales

8.5%

6.0%

6.5%

8.5%

6.0%

6.5%

Professional — Nonsales

8.5%

6.0%

6.5%

8.5%

6.0%

6.5%

Para-professional — White collar

8.5%

6.0%

6.5%

8.5%

6.0%

6.5%

Para-professional — Blue collar

8.5%

6.0%

6.5%

8.5%

6.0%

6.5%

© 2016 Mercer LLC.

184

Global Compensation Planning Report — October Update

BOLIVIA

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

–

–

–

Executive

–

–

–

Management — Nonsales

–

–

–

Professional — Sales

–

–

–

Professional — Nonsales

–

–

–

Para-professional — White collar

–

–

–

Para-professional — Blue collar

–

–

–

Note: Data are not available.

MANDATORY PAY INCREASE SCHEMES Since 2008, the government defined an annual mandatory salary increase approximating the inflation rate. Public and private employees' salaries and the minimum monthly wages are increased annually.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

67%

70%

47%

53%

53%

15%

Median target bonus (% of base pay)

–

11%

12%

8%

8%

–

Median actual bonus (% of base pay)

–

11%

12%

9%

9%

–

© 2016 Mercer LLC.

185

Global Compensation Planning Report — October Update

BOLIVIA

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE Economic Trends — Latin America, October 2016 Bolivia Total Remuneration Survey, June 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Not applicable

October 1, 2016

37

June 1, 2016

Not applicable

October 2016

186

Global Compensation Planning Report — October Update

BRAZIL

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: -3.8%

Inflation, annual average change

2016: -3.3%

2015: 9.0%

2017: 0.5%

Unemployment

2016: 9.0%

2015: 8.5%

2017: 5.4%

2016: 11.2%

2017: 11.5%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

8.3%

8.9%

9.5%

8.3%

8.9%

9.5%

Executive

8.3%

8.9%

9.5%

8.3%

8.9%

9.5%

Management — Nonsales

8.3%

8.9%

9.5%

8.3%

8.9%

9.5%

Professional — Sales

8.3%

8.9%

9.5%

8.3%

8.9%

9.5%

Professional — Nonsales

8.3%

8.9%

9.5%

8.3%

8.9%

9.5%

Para-professional — White collar

8.3%

8.9%

9.5%

8.3%

8.9%

9.5%

Para-professional — Blue collar

8.3%

8.9%

9.5%

8.3%

8.9%

9.5%

© 2016 Mercer LLC.

187

Global Compensation Planning Report — October Update

BRAZIL

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

–

–

–

Executive

–

–

–

Management — Nonsales

–

–

–

Professional — Sales

–

–

–

Professional — Nonsales

–

–

–

Para-professional — White collar

–

–

–

Para-professional — Blue collar

–

–

–

Note: Data are not available.

MANDATORY PAY INCREASE SCHEMES Brazil has no automatic price index that applies to pay increases, but employers must follow any union agreements to which they are subject.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

92%

89%

82%

83%

83%

79%

Median target bonus (% of base pay)

28%

17%

10%

9%

9%

10%

Median actual bonus (% of base pay)

23%

12%

7%

7%

7%

8%

© 2016 Mercer LLC.

188

Global Compensation Planning Report — October Update

BRAZIL

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE Economic Trends — Latin America, October 2016

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Not applicable

October 1, 2016

478

May 1, 2016

Not applicable

October 2016

Brazil Total Remuneration Survey May, 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

189

Global Compensation Planning Report — October Update

CANADA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 1.1%

Inflation, annual average change

2016: 1.2%

2015: 1.1%

2017: 1.9%

Unemployment

2016: 1.6%

2015: 6.9%

2017: 2.1%

2016: 7.0%

2017: 7.1%

BASE SALARY INCREASES SALARY INCREASES AVERAGE SALARY INCREASES EXCLUDING ZEROES

AVERAGE SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

2.8%

2.5%

2.6%

2.4%

2.1%

2.3%

Executive

2.8%

2.7%

2.6%

2.3%

2.2%

2.4%

Management — Nonsales

2.8%

2.6%

2.6%

2.5%

2.4%

2.5%

Professional — Sales

2.8%

2.5%

2.6%

2.5%

2.4%

2.6%

Professional — Nonsales

2.8%

2.6%

2.6%

2.5%

2.5%

2.6%

Para-professional — White collar

2.7%

2.5%

2.6%

2.5%

2.4%

2.5%

Para-professional — Blue collar

2.7%

2.4%

2.5%

2.2%

2.4%

2.5%

© 2016 Mercer LLC.

190

Global Compensation Planning Report — October Update

CANADA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

13%

19%

12%

Executive

18%

24%

14%

Management — Nonsales

12%

18%

11%

Professional — Sales

15%

19%

13%

Professional — Nonsales

11%

16%

10%

Para-professional — White collar

11%

16%

10%

Para-professional — Blue collar

14%

19%

13%

MANDATORY PAY INCREASE SCHEMES Canada does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

95%

100%

74%

99%

98%

67%

Median target bonus (% of base pay)

35%

18%

14%

10%

6%

5%

Median actual bonus (% of base pay)

35%

18%

14%

10%

6%

5%

Note: Data are from Canada Compensation Planning Survey, August 2015.

© 2016 Mercer LLC.

191

Global Compensation Planning Report — October Update

CANADA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Information Technology

Professional — Nonsales

Information Technology

Professional — Nonsales

Engineering

Professional — Nonsales

Sales

Professional — Sales

Operations

Para-professional — Blue collar

Sales

Professional — Sales

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

487

June 2016

Not applicable

October 2016

2016/2017 Canada Compensation Planning Survey, September 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

192

Global Compensation Planning Report — October Update

CHILE

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 2.3%

Inflation, annual average change

2016: 1.7%

2015: 4.3%

2017: 2.0%

Unemployment

2016: 4.0%

2015: 6.2%

2017: 3.0%

2016: 7.0%

2017: 7.6%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

5.5%

5.0%

5.1%

5.5%

5.0%

5.1%

Executive

5.5%

5.0%

5.1%

5.5%

5.0%

5.1%

Management — Nonsales

5.5%

5.0%

5.1%

5.5%

5.0%

5.1%

Professional — Sales

5.5%

5.0%

5.1%

5.5%

5.0%

5.1%

Professional — Nonsales

5.5%

5.0%

5.1%

5.5%

5.0%

5.1%

Para-professional — White collar

5.5%

5.0%

5.1%

5.5%

5.0%

5.1%

Para-professional — Blue collar

5.5%

5.0%

5.1%

5.5%

5.0%

5.1%

© 2016 Mercer LLC.

193

Global Compensation Planning Report — October Update

CHILE

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

–

–

–

Executive

–

–

–

Management — Nonsales

–

–

–

Professional — Sales

–

–

–

Professional — Nonsales

–

–

–

Para-professional — White collar

–

–

–

Para-professional — Blue collar

–

–

–

Note: Data are not available.

MANDATORY PAY INCREASE SCHEMES Chile does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

90%

88%

67%

74%

74%

50%

Median target bonus (% of base pay)

27%

17%

13%

10%

10%

10%

Median actual bonus (% of base pay)

26%

15%

11%

9%

9%

10%

© 2016 Mercer LLC.

194

Global Compensation Planning Report — October Update

CHILE

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE Economic Trends — Latin America, October 2016 Chile Total Remuneration Survey, May 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Not applicable

October 1, 2016

357

May 1, 2016

Not applicable

October 2016

195

Global Compensation Planning Report — October Update

COLOMBIA

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 3.1%

Inflation, annual average change

2016: 2.2%

2015: 5.0%

2017: 2.7%

Unemployment

2016: 7.6%

2015: 8.9%

2017: 4.1%

2016: 9.7%

2017: 9.6%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

4.7%

6.0%*

7.4%

4.7%

6.0%*

7.4%

Executive

4.7%

6.0%*

7.4%

4.7%

6.0%*

7.4%

Management — Nonsales

4.7%

6.0%*

7.4%

4.7%

6.0%*

7.4%

Professional — Sales

4.7%

6.0%*

7.4%

4.7%

6.0%*

7.4%

Professional — Nonsales

4.7%

6.0%*

7.4%

4.7%

6.0%*

7.4%

Para-professional — White collar

4.7%

6.0%*

7.4%

4.7%

6.0%*

7.4%

Para-professional — Blue collar

4.7%

6.0%*

7.4%

4.7%

6.0%*

7.4%

* Even though the salary increase reflected is 6% for general market, the increase for minimmun wage is 7% according to official sources.

© 2016 Mercer LLC.

196

Global Compensation Planning Report — October Update

COLOMBIA

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

–

–

–

Executive

–

–

–

Management — Nonsales

–

–

–

Professional — Sales

–

–

–

Professional — Nonsales

–

–

–

Para-professional — White collar

–

–

–

Para-professional — Blue collar

–

–

–

Note: Data are not available.

MANDATORY PAY INCREASE SCHEMES Mandatory pay increase is only for minimum legal salary and minimum integral salary.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

86%

82%

56%

72%

72%

40%

Median target bonus (% of base pay)

25%

16%

11%

8%

8%

7%

Median actual bonus (% of base pay)

24%

14%

9%

7%

7%

6%

© 2016 Mercer LLC.

197

Global Compensation Planning Report — October Update

COLOMBIA

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Not applicable

October 1, 2016

345

May 1, 2016

Not applicable

October 2016

Economic Trends — Latin America, October 2016 Colombia Total Remuneration Survey, May 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

198

Global Compensation Planning Report — October Update

COSTA RICA

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 3.7%

Inflation, annual average change

2016: 4.3%

2015: 0.8%

2017: 4.3%

Unemployment

2016: 0.7%

2015: 9.2%

2017: 2.6%

2016: 8.2%

2017: 8.1%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

5.7%

4.7%

4.7%

5.7%

4.7%

4.7%

Executive

5.7%

4.7%

4.7%

5.7%

4.7%

4.7%

Management — Nonsales

5.7%

4.7%

4.7%

5.7%

4.7%

4.7%

Professional — Sales

5.7%

4.7%

4.7%

5.7%

4.7%

4.7%

Professional — Nonsales

5.7%

4.7%

4.7%

5.7%

4.7%

4.7%

Para-professional — White collar

5.7%

4.7%

4.7%

5.7%

4.7%

4.7%

Para-professional — Blue collar

5.7%

4.7%

4.7%

5.7%

4.7%

4.7%

© 2016 Mercer LLC.

199

Global Compensation Planning Report — October Update

COSTA RICA

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

–

–

–

Executive

–

–

–

Management — Nonsales

–

–

–

Professional — Sales

–

–

–

Professional — Nonsales

–

–

–

Para-professional — White collar

–

–

–

Para-professional — Blue collar

–

–

–

Note: Data are not available.

MANDATORY PAY INCREASE SCHEMES Costa Rica does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

86%

84%

53%

68%

68%

49%

Median target bonus (% of base pay)

22%

13%

10%

8%

8%

6%

Median actual bonus (% of base pay)

21%

11%

10%

6%

6%

4%

© 2016 Mercer LLC.

200

Global Compensation Planning Report — October Update

COSTA RICA

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Economic Trends — Latin America, October 2016

Not applicable

October 1, 2016

Costa Rica Total Remuneration Survey, June 2016

115

June 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

201

Global Compensation Planning Report — October Update

DOMINICAN REPUBLIC

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 7.0%

Inflation, annual average change

2016: 5.9%

2015: 0.8%

2017: 4.5%

Unemployment

2016: 2.3%

2015: 5.9%

2017: 4.0%

2016: 5.2%

2017: 5.3%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

6.0%

5.3%

5.8%

6.0%

5.3%

5.8%

Executive

6.0%

5.3%

5.8%

6.0%

5.3%

5.8%

Management — Nonsales

6.0%

5.3%

5.8%

6.0%

5.3%

5.8%

Professional — Sales

6.0%

5.3%

5.8%

6.0%

5.3%

5.8%

Professional — Nonsales

6.0%

5.3%

5.8%

6.0%

5.3%

5.8%

Para-professional — White collar

6.0%

5.3%

5.8%

6.0%

5.3%

5.8%

Para-professional — Blue collar

6.0%

5.3%

5.8%

6.0%

5.3%

5.8%

© 2016 Mercer LLC.

202

Global Compensation Planning Report — October Update

DOMINICAN REPUBLIC

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

–

–

–

Executive

–

–

–

Management — Nonsales

–

–

–

Professional — Sales

–

–

–

Professional — Nonsales

–

–

–

Para-professional — White collar

–

–

–

Para-professional — Blue collar

–

–

–

Note: Data are not available.

MANDATORY PAY INCREASE SCHEMES The current resolution issued by the National Salaries Committee (CNS), CNS 1/2015, decided that all companies should increase their salaries by 14% in each scale of the minimum wage.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

88%

77%

45%

65%

65%

32%

Median target bonus (% of base pay)

23%

14%

13%

9%

9%

7%

Median actual bonus (% of base pay)

22%

13%

16%

8%

8%

5%

© 2016 Mercer LLC.

203

Global Compensation Planning Report — October Update

DOMINICAN REPUBLIC

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE Economic Trends — Latin America, October 2016 Dominican Republic Total Remuneration Survey, June 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Not applicable

October 1, 2016

59

June 1, 2016

Not applicable

October 2016

204

Global Compensation Planning Report — October Update

ECUADOR

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 0.29%

Inflation, annual average change

2016: -2.3%

2015: 4.0%

2017: -2.7%

Unemployment

2016: 2.4%

2015: 4.8%

2017: 1.1%

2016: 6.1%

2017: 6.9%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

5.2%

3.5%

3.2%

5.2%

3.5%

3.2%

Executive

5.2%

3.5%

3.2%

5.2%

3.5%

3.2%

Management — Nonsales

5.2%

3.5%

3.2%

5.2%

3.5%

3.2%

Professional — Sales

5.2%

3.5%

3.2%

5.2%

3.5%

3.2%

Professional — Nonsales

5.2%

3.5%

3.2%

5.2%

3.5%

3.2%

Para-professional — White collar

5.2%

3.5%

3.2%

5.2%

3.5%

3.2%

Para-professional — Blue collar

5.2%

3.5%

3.2%

5.2%

3.5%

3.2%

© 2016 Mercer LLC.

205

Global Compensation Planning Report — October Update

ECUADOR

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

–

–

–

Executive

–

–

–

Management — Nonsales

–

–

–

Professional — Sales

–

–

–

Professional — Nonsales

–

–

–

Para-professional — White collar

–

–

–

Para-professional — Blue collar

–

–

–

Note: Data are not available.

MANDATORY PAY INCREASE SCHEMES Ecuador's mandatory pay increase policy is only for minimum legal salary.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

82%

82%

49%

64%

64%

29%

Median target bonus (% of base pay)

19%

12%

11%

9%

9%

8%

Median actual bonus (% of base pay)

17%

10%

7%

7%

7%

7%

© 2016 Mercer LLC.

206

Global Compensation Planning Report — October Update

ECUADOR

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE Economic Trends — Latin America, October 2016 Ecuador Total Remuneration Survey, May 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Not applicable

October 1, 2016

111

May 1, 2016

Not applicable

October 2016

207

Global Compensation Planning Report — October Update

EL SALVADOR

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 2.5%

Inflation, annual average change

2016: 2.4%

2015: -0.7%

2017: 2.4%

Unemployment 2015: 5.3%

2016: 1.0%

2016: 5.3%

2017: 5.3%

2017: 1.5%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

4.0%

3.7%

4.0%

4.0%

3.7%

4.0%

Executive

4.0%

3.7%

4.0%

4.0%

3.7%

4.0%

Management — Nonsales

4.0%

3.7%

4.0%

4.0%

3.7%

4.0%

Professional — Sales

4.0%

3.7%

4.0%

4.0%

3.7%

4.0%

Professional — Nonsales

4.0%

3.7%

4.0%

4.0%

3.7%

4.0%

Para-professional — White collar

4.0%

3.7%

4.0%

4.0%

3.7%

4.0%

Para-professional — Blue collar

4.0%

3.7%

4.0%

4.0%

3.7%

4.0%

© 2016 Mercer LLC.

208

Global Compensation Planning Report — October Update

EL SALVADOR

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

–

–

–

Executive

–

–

–

Management — Nonsales

–

–

–

Professional — Sales

–

–

–

Professional — Nonsales

–

–

–

Para-professional — White collar

–

–

–

Para-professional — Blue collar

–

–

–

Note: Data are not available.

MANDATORY PAY INCREASE SCHEMES El Salvador does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

81%

73%

46%

54%

54%

29%

Median target bonus (% of base pay)

21%

14%

15%

9%

9%

6%

Median actual bonus (% of base pay)

24%

13%

11%

10%

10%

6%

© 2016 Mercer LLC.

209

Global Compensation Planning Report — October Update

EL SALVADOR

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

El Salvador Total Remuneration Survey, June 2015

56

June 1, 2015

Economic Trends — Latin America, October 2016

Not applicable

October 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

© 2016 Mercer LLC.

210

Global Compensation Planning Report — October Update

GUATEMALA

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 3.9%

Inflation, annual average change

2016: 4.4%

2015: 3.1%

2017: 4.2%

Unemployment

2016: 3.2%

2015: 2.9%

2017: 3.9%

2016: 2.8% 2017: 2.8

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

5.2%

5.0%

4.7%

5.2%

5.0%

4.7%

Executive

5.2%

5.0%

4.7%

5.2%

5.0%

4.7%

Management — Nonsales

5.2%

5.0%

4.7%

5.2%

5.0%

4.7%

Professional — Sales

5.2%

5.0%

4.7%

5.2%

5.0%

4.7%

Professional — Nonsales

5.2%

5.0%

4.7%

5.2%

5.0%

4.7%

Para-professional — White collar

5.2%

5.0%

4.7%

5.2%

5.0%

4.7%

Para-professional — Blue collar

5.2%

5.0%

4.7%

5.2%

5.0%

4.7%

© 2016 Mercer LLC.

211

Global Compensation Planning Report — October Update

GUATEMALA

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

–

–

–

Executive

–

–

–

Management — Nonsales

–

–

–

Professional — Sales

–

–

–

Professional — Nonsales

–

–

–

Para-professional — White collar

–

–

–

Para-professional — Blue collar

–

–

–

Note: Data are not available.

MANDATORY PAY INCREASE SCHEMES Guatemala does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

77%

77%

48%

64%

64%

48%

Median target bonus (% of base pay)

20%

13%

10%

9%

9%

9%

Median actual bonus (% of base pay)

18%

11%

10%

8%

8%

5%

© 2016 Mercer LLC.

212

Global Compensation Planning Report — October Update

GUATEMALA

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Economic Trends — Latin America, October 2016

Not applicable

October 1, 2016

Guatemala Total Remuneration Survey, June 2016

93

June 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

213

Global Compensation Planning Report — October Update

HONDURAS

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 3.6%

Inflation, annual average change

2016: 3.6%

2015: 3.2%

2017: 3.7%

Unemployment

2016: 3.1%

2015: 4.0%

2017: 4.1%

2016: 4.0%

2017: 4.0%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

5.4%

5.0%

5.1%

5.4%

5.0%

5.1%

Executive

5.4%

5.0%

5.1%

5.4%

5.0%

5.1%

Management — Nonsales

5.4%

5.0%

5.1%

5.4%

5.0%

5.1%

Professional — Sales

5.4%

5.0%

5.1%

5.4%

5.0%

5.1%

Professional — Nonsales

5.4%

5.0%

5.1%

5.4%

5.0%

5.1%

Para-professional — White collar

5.4%

5.0%

5.1%

5.4%

5.0%

5.1%

Para-professional — Blue collar

5.4%

5.0%

5.1%

5.4%

5.0%

5.1%

© 2016 Mercer LLC.

214

Global Compensation Planning Report — October Update

HONDURAS

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

–

–

–

Executive

–

–

–

Management — Nonsales

–

–

–

Professional — Sales

–

–

–

Professional — Nonsales

–

–

–

Para-professional — White collar

–

–

–

Para-professional — Blue collar

–

–

–

Note: Data are not available.

MANDATORY PAY INCREASE SCHEMES Honduras does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

75%

72%

40%

64%

64%

45%

Median target bonus (% of base pay)

–

13%

9%

8%

8%

4%

Median actual bonus (% of base pay)

–

12%

8%

6%

6%

3%

© 2016 Mercer LLC.

215

Global Compensation Planning Report — October Update

HONDURAS

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

40

June 1, 2015

Economic Trends — Latin America, July 2016

Not applicable

July 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

Honduras Total Remuneration Survey, June 2015

© 2016 Mercer LLC.

216

Global Compensation Planning Report — October Update

MEXICO

Data for 2015

Actual

Data for 2016

Budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 2.5%

Inflation, annual average change

2016: 2.1%

2015: 2.7%

2017: 2.3%

Unemployment

2016: 2.8%

2015: 4.4%

2017: 3.3%

2016: 4.1%

2017: 3.9%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

4.5%

4.2%

4.5%

4.5%

–

4.4%

Executive

4.5%

4.4%

4.5%

4.5%

–

–

Management — Nonsales

4.5%

4.5%

4.5%

4.5%

4.5%

4.5%

Professional — Sales

4.4%

4.0%

4.5%

–

4.0%

4.5%

Professional — Nonsales

4.5%

4.2%

4.5%

4.5%

–

4.5%

Para-professional — White collar

4.5%

4.1%

4.5%

4.5%

4.2%

4.5%

Para-professional — Blue collar

4.5%

4.3%

4.5%

4.5%

4.3%

4.5%

© 2016 Mercer LLC.

217

Global Compensation Planning Report — October Update

MEXICO

Data for 2015

Actual

Data for 2016

Budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

2%

3%

3%

Executive

2%

0%

0%

Management — Nonsales

2%

0%

0%

Professional — Sales

2%

2%

0%

Professional — Nonsales

0%

0%

0%

Para-professional — White collar

0%

0%

0%

Para-professional — Blue collar

2%

2%

0%

MANDATORY PAY INCREASE SCHEMES Mexico does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

81%

85%

54%

61%

56%

39%

Median target bonus (% of base pay)

30%

18%

19%

11%

10%

–

Median actual bonus (% of base pay)

30%

18%

19%

10%

10%

2%

© 2016 Mercer LLC.

218

Global Compensation Planning Report — October Update

MEXICO

Data for 2015

Actual

Data for 2016

Budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Quality

Senior — Supervisor

Finances

Junior — Supervisor

Finances

Senior — Supervisor, Senior — Professional

Marketing

Engineering

Junior — Supervisor, Senior — Professional

Senior — Supervisor, Junior — Supervisor, Senior — Professional

Research and Development

Junior — Supervisor

Marketing

Senior — Supervisor

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

59

October 6, 2016

Not applicable

October 2016

Compensation Planning, October 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

219

Global Compensation Planning Report — October Update

MEXICO–BAJIO

Data for 2015

Actual

Data for 2016

Budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 2.5%

Inflation, annual average change

2016: 2.1%

2015: 2.7%

2017: 2.3%

Unemployment

2016: 2.8%

2015: 4.4%

2017: 3.3%

2016: 4.1%

2017: 3.9%

Note: GDP, Inflation, and unemployment figures are for Mexico.

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

5.0%

4.7%

4.5%

4.7%

4.7%

4.5%

Executive

4.7%

5.0%

4.5%

4.3%

5.0%

4.5%

Management — Nonsales

5.0%

4.8%

4.3%

5.0%

4.8%

4.3%

Professional — Sales

4.4%

3.8%

4.0%

–

3.8%

4.0%

Professional — Nonsales

5.0%

4.5%

4.3%

5.0%

4.5%

4.3%

Para-professional — White collar

5.0%

4.5%

4.0%

5.0%

4.5%

4.0%

Para-professional — Blue collar

4.9%

4.6%

4.6%

4.8%

4.6%

4.6%

© 2016 Mercer LLC.

220

Global Compensation Planning Report — October Update

MEXICO–BAJIO

Data for 2015

Actual

Data for 2016

Budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

8%

0%

0%

Executive

8%

0%

0%

Management — Nonsales

8%

0%

0%

Professional — Sales

17%

17%

17%

Professional — Nonsales

8%

0%

0%

Para-professional — White collar

8%

0%

0%

Para-professional — Blue collar

8%

8%

8%

MANDATORY PAY INCREASE SCHEMES Mexico-Bajio does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

67%

75%

33%

58%

67%

67%

Median target bonus (% of base pay)

26%

14%

–

8%

7%

4%

Median actual bonus (% of base pay)

28%

12%

–

8%

7%

3%

© 2016 Mercer LLC.

221

Global Compensation Planning Report — October Update

MEXICO–BAJIO

Data for 2015

Actual

Data for 2016

Budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

Top Management

VP/Directors

Quality

Senior — Supervisor, Junior — Supervisor, Senior — Professional, Junior — Professional

Engineering

VP/Directors, Senior — Supervisor, Junior — Supervisor, Senior — Professional, Junior — Professional

Project Engineering

VP/Directors, Senior — Supervisor, Junior — Supervisor, Senior — Professional, Junior — Professional

Manufacture

VP/Directors, Senior — Supervisor, Junior — Supervisor, Senior — Professional, Junior — Professional

Maintenance

Senior — Supervisor, Junior — Supervisor, Senior — Professional, Junior — Professional

JOB FAMILY

LEVEL

Quality

VP/Directors, Senior — Supervisor, Junior — Supervisor, Senior — Professional, Junior — Professional

Engineering

VP/Directors, Senior — Supervisor, Junior — Supervisor, Senior — Professional, Junior — Professional

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

12

October 6, 2016

Not applicable

October 2016

Compensation Planning, October 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

222

Global Compensation Planning Report — October Update

MEXICO–MONTERREY–SALTILLO

Data for 2015

Actual

Data for 2016

Budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 2.5%

Inflation, annual average change

2016: 2.1%

2015: 2.7%

2017: 2.3%

Unemployment

2016: 2.8%

2015: 4.4%

2017: 3.3%

2016: 4.1%

2017: 3.9%

Note: GDP, Inflation, and unemployment figures are for Mexico.

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

4.2%

4.7%

4.5%

4.2%

4.7%

4.5%

Executive

4.0%

4.7%

4.5%

4.0%

4.7%

4.5%

Management — Nonsales

4.0%

4.7%

4.5%

4.0%

4.7%

4.5%

Professional — Sales

4.0%

4.3%

4.4%

4.0%

4.0%

4.0%

Professional — Nonsales

4.2%

4.7%

4.8%

4.0%

4.7%

4.7%

Para-professional — White collar

4.0%

4.6%

4.7%

4.0%

4.6%

4.7%

Para-professional — Blue collar

4.2%

4.4%

4.5%

4.2%

4.4%

4.5%

© 2016 Mercer LLC.

223

Global Compensation Planning Report — October Update

MEXICO–MONTERREY–SALTILLO

Data for 2015

Actual

Data for 2016

Budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

0%

0%

0%

Executive

0%

0%

0%

Management — Nonsales

0%

0%

0%

Professional — Sales

10%

10%

10%

Professional — Nonsales

5%

5%

5%

Para-professional — White collar

0%

0%

0%

Para-professional — Blue collar

5%

0%

0%

MANDATORY PAY INCREASE SCHEMES Mexico-Monterrey-Saltillo does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

78%

72%

33%

39%

39%

44%

Median target bonus (% of base pay)

25%

15%

8%

10%

8%

9%

Median actual bonus (% of base pay)

20%

15%

8%

8%

5%

6%

© 2016 Mercer LLC.

224

Global Compensation Planning Report — October Update

MEXICO–MONTERREY–SALTILLO

Data for 2015

Actual

Data for 2016

Budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

Management

VP/Directors

Quality

Senior — Supervisor

Engineering

Senior — Supervisor, Senior — Professional

Top Management

VP/Directors

High Tech

Senior — Supervisor

Engineering

Senior — Supervisor, Senior — Professional

Project Engineering

Senior — Supervisor, Senior — Professional

Research and Development

Senior — Supervisor, Senior — Professional

Manufacture

Senior — Supervisor, Senior — Professional

Maintenance

Junior — Supervisor, Senior — Professional, Junior — Professional

LEVEL

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

20

October 6, 2016

Not applicable

October 2016

Compensation Planning, October 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

225

Global Compensation Planning Report — October Update

MEXICO–REYNOSA

Data for 2015

Actual

Data for 2016

Budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 2.5%

Inflation, annual average change

2016: 2.1%

2015: 2.7%

2017: 2.3%

Unemployment

2016: 2.8%

2015: 4.4%

2017: 3.3%

2016: 4.1%

2017: 3.9%

Note: GDP, inflation, and unemployment figures are for Mexico.

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

4.0%

4.0%

4.3%

4.0%

4.0%

4.3%

Executive

4.0%

4.0%

4.3%

4.0%

3.5%

4.0%

Management — Nonsales

4.0%

3.5%

4.0%

4.0%

3.5%

4.0%

Professional — Sales

4.3%

4.0%

4.3%

4.0%

4.0%

4.0%

Professional — Nonsales

4.0%

4.0%

4.0%

4.0%

4.0%

4.0%

Para-professional — White collar

4.0%

3.5%

4.0%

4.0%

3.5%

4.0%

Para-professional — Blue collar

4.0%

4.0%

4.0%

4.0%

4.0%

4.0%

© 2016 Mercer LLC.

226

Global Compensation Planning Report — October Update

MEXICO–REYNOSA

Data for 2015

Actual

Data for 2016

Budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

0%

0%

0%

Executive

14%

14%

14%

Management — Nonsales

0%

0%

0%

Professional — Sales

14%

14%

14%

Professional — Nonsales

0%

0%

0%

Para-professional — White collar

0%

0%

0%

Para-professional — Blue collar

0%

0%

0%

MANDATORY PAY INCREASE SCHEMES Mexico-Reynosa does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

14%

29%

14%

14%

14%

14%

Median target bonus (% of base pay)

-

-

-

-

-

-

Median actual bonus (% of base pay)

-

-

-

-

-

-

Note: 2015 data reported; 2016 data will be available in the October edition of GCPR.

© 2016 Mercer LLC.

227

Global Compensation Planning Report — October Update

MEXICO–REYNOSA

Data for 2015

Actual

Data for 2016

Budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT? JOB FAMILY

LEVEL

Quality

Senior — Supervisor, Junior — Supervisor, Junior — Professional, Senior — Professional

Project Engineering

Junior — Supervisor, Senior — Professional

Maintenance

Senior — Supervisor, Junior — Supervisor, Senior — Professional, Junior — Professional

WHICH EMPLOYEES ARE HARDEST TO RETAIN? JOB FAMILY

LEVEL

Engineering

Senior — Supervisor, Junior — Supervisor, Senior — Professional

Maintenance

Senior — Supervisor, Junior — Supervisor, Senior — Professional, Junior — Professional

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

7

October 6, 2016

Not applicable

October 2016

Compensation Planning, October 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

228

Global Compensation Planning Report — October Update

NICARAGUA

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 4.9%

Inflation, annual average change

2016: 4.5%

2015: 4.0%

2017: 4.3%

Unemployment

2016: 6.2%

2015: 6.8%

2017: 7.3%

2016: 6.9%

2017: 7.3%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

6.0%

5.3%

5.8%

6.0%

5.3%

5.8%

Executive

6.0%

5.3%

5.8%

6.0%

5.3%

5.8%

Management — Nonsales

6.0%

5.3%

5.8%

6.0%

5.3%

5.8%

Professional — Sales

6.0%

5.3%

5.8%

6.0%

5.3%

5.8%

Professional — Nonsales

6.0%

5.3%

5.8%

6.0%

5.3%

5.8%

Para-professional — White collar

6.0%

5.3%

5.8%

6.0%

5.3%

5.8%

Para-professional — Blue collar

6.0%

5.3%

5.8%

6.0%

5.3%

5.8%

© 2016 Mercer LLC.

229

Global Compensation Planning Report — October Update

NICARAGUA

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

–

–

–

Executive

–

–

–

Management — Nonsales

–

–

–

Professional — Sales

–

–

–

Professional — Nonsales

–

–

–

Para-professional — White collar

–

–

–

Para-professional — Blue collar

–

–

–

Note: Data are not available.

MANDATORY PAY INCREASE SCHEMES Nicaragua does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

78%

43%

58%

58%

50%

Median target bonus (% of base pay)

19%

15%

11%

8%

8%

4%

Median actual bonus (% of base pay)

23%

14%

15%

7%

7%

4%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

NICARAGUA

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Economic Trends — Latin America, October 2016

Not applicable

October 1, 2016

Nicaragua Total Remuneration Survey, June 2016

42

June 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

231

Global Compensation Planning Report — October Update

PANAMA

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 5.8%

Inflation, annual average change

2016: 5.2%

2015: 0.1%

2017: 5.8%

Unemployment

2016: 0.7%

2015: 5.1%

2017: 1.5%

2016: 5.1%

2017: 5.1%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

5.0%

5.0%

4.5%

5.0%

5.0%

4.5%

Executive

5.0%

5.0%

4.5%

5.0%

5.0%

4.5%

Management — Nonsales

5.0%

5.0%

4.5%

5.0%

5.0%

4.5%

Professional — Sales

5.0%

5.0%

4.5%

5.0%

5.0%

4.5%

Professional — Nonsales

5.0%

5.0%

4.5%

5.0%

5.0%

4.5%

Para-professional — White collar

5.0%

5.0%

4.5%

5.0%

5.0%

4.5%

Para-professional — Blue collar

5.0%

5.0%

4.5%

5.0%

5.0%

4.5%

© 2016 Mercer LLC.

232

Global Compensation Planning Report — October Update

PANAMA

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

–

–

–

Executive

–

–

–

Management — Nonsales

–

–

–

Professional — Sales

–

–

–

Professional — Nonsales

–

–

–

Para-professional — White collar

–

–

–

Para-professional — Blue collar

–

–

–

Note: Data are not available.

MANDATORY PAY INCREASE SCHEMES Panama does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

88%

84%

66%

75%

75%

52%

Median target bonus (% of base pay)

20%

17%

10%

9%

9%

12%

Median actual bonus (% of base pay)

19%

12%

8%

8%

8%

9%

© 2016 Mercer LLC.

233

Global Compensation Planning Report — October Update

PANAMA

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE Economic Trends — Latin America, October 2016 Panama Total Remuneration Survey, May 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Not applicable

October 1, 2016

149

May 1, 2016

Not applicable

October 2016

234

Global Compensation Planning Report — October Update

PARAGUAY

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 3.1%

Inflation, annual average change

2016: 3.5%

2015: 3.1%

2017: 3.6%

Unemployment

2016: 4.1%

2015: 6.1%

2017: 4.1%

2016: 5.9%

2017: 5.5%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.0%

7.0%

7.0%

7.0%

7.0%

7.0%

Executive

7.0%

7.0%

7.0%

7.0%

7.0%

7.0%

Management — Nonsales

7.0%

7.0%

7.0%

7.0%

7.0%

7.0%

Professional — Sales

7.0%

7.0%

7.0%

7.0%

7.0%

7.0%

Professional — Nonsales

7.0%

7.0%

7.0%

7.0%

7.0%

7.0%

Para-professional — White collar

7.0%

7.0%

7.0%

7.0%

7.0%

7.0%

Para-professional — Blue collar

7.0%

7.0%

7.0%

7.0%

7.0%

7.0%

© 2016 Mercer LLC.

235

Global Compensation Planning Report — October Update

PARAGUAY

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

–

–

–

Executive

–

–

–

Management — Nonsales

–

–

–

Professional — Sales

–

–

–

Professional — Nonsales

–

–

–

Para-professional — White collar

–

–

–

Para-professional — Blue collar

–

–

–

Note: Data are not available.

MANDATORY PAY INCREASE SCHEMES Paraguay has no general mandatory increases.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

71%

86%

77%

74%

38%

64%

Median target bonus (% of base pay)

25%

15%

11%

9%

–

10%

Median actual bonus (% of base pay)

25%

15%

10%

8%

–

10%

© 2016 Mercer LLC.

236

Global Compensation Planning Report — October Update

PARAGUAY

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

42

July 1, 2015

Economic Trends — Latin America, October 2016

Not applicable

October 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

Total Remuneration Survey, Paraguay July 2015

© 2016 Mercer LLC.

237

Global Compensation Planning Report — October Update

PERU

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 3.3%

Inflation, annual average change

2016: 3.7%

2015: 3.5%

2017: 4.1%

Unemployment

2016: 3.6%

2015: 6.0%

2017: 2.5%

2016: 6.0%

2017: 6.0%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

4.1%

5.0%

5.1%

4.1%

5.0%

5.1%

Executive

4.1%

5.0%

5.1%

4.1%

5.0%

5.1%

Management — Nonsales

4.1%

5.0%

5.1%

4.1%

5.0%

5.1%

Professional — Sales

4.1%

5.0%

5.1%

4.1%

5.0%

5.1%

Professional — Nonsales

4.1%

5.0%

5.1%

4.1%

5.0%

5.1%

Para-professional — White collar

4.1%

5.0%

5.1%

4.1%

5.0%

5.1%

Para-professional — Blue collar

4.1%

5.0%

5.1%

4.1%

5.0%

5.1%

© 2016 Mercer LLC.

238

Global Compensation Planning Report — October Update

PERU

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

–

–

–

Executive

–

–

–

Management — Nonsales

–

–

–

Professional — Sales

–

–

–

Professional — Nonsales

–

–

–

Para-professional — White collar

–

–

–

Para-professional — Blue collar

–

–

–

Note: Data are not available.

MANDATORY PAY INCREASE SCHEMES Peru has no mandatory pay increase scheme, but, in July and December, companies deliver the amount of an additional month's salary to all workers.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

85%

83%

50%

64%

64%

24%

Median target bonus (% of base pay)

23%

14%

10%

9%

9%

10%

Median actual bonus (% of base pay)

20%

13%

9%

7%

7%

7%

© 2016 Mercer LLC.

239

Global Compensation Planning Report — October Update

PERU

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT? JOB FAMILY

LEVEL

Sales

Para-professional

Quality

Manager, Para-professional

Research and Development

Para-professional

WHICH EMPLOYEES ARE HARDEST TO RETAIN? JOB FAMILY

LEVEL

Sales

Para-professional — White collar, Professional — Sales of the health care industry

Human Resources

Para-professional — White collar

Information Technology

Para-professional — White collar

Marketing

Para-professional — White collar

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Workforce Metrics Database 2014-2015

Not applicable

Not applicable

Economic Trends — Latin America, October 2016

Not applicable

October 1, 2016

242

May 1, 2016

Not applicable

October 2016

Peru Total Remuneration Survey, May 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

240

Global Compensation Planning Report — October Update

PUERTO RICO

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: -0.05%

Inflation, annual average change

2016: -1.8%

2015: -0.8%

2017: -1.4%

Unemployment

2016: -0.2%

2015: 12.0%

2017: 1.1%

2016: 11.9%

2017: 11.9%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

3.3%

2.8%

3.9%

3.3%

2.8%

3.9%

Executive

3.3%

2.8%

3.9%

3.3%

2.8%

3.9%

Management — Nonsales

3.3%

2.8%

3.9%

3.3%

2.8%

3.9%

Professional — Sales

3.3%

2.8%

3.9%

3.3%

2.8%

3.9%

Professional — Nonsales

3.3%

2.8%

3.9%

3.3%

2.8%

3.9%

Para-professional — White collar

3.3%

2.8%

3.9%

3.3%

2.8%

3.9%

Para-professional — Blue collar

3.3%

2.8%

3.9%

3.3%

2.8%

3.9%

© 2016 Mercer LLC.

241

Global Compensation Planning Report — October Update

PUERTO RICO

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

–

–

–

Executive

–

–

–

Management — Nonsales

–

–

–

Professional — Sales

–

–

–

Professional — Nonsales

–

–

–

Para-professional — White collar

–

–

–

Para-professional — Blue collar

–

–

–

Note: Data are not available.

MANDATORY PAY INCREASE SCHEMES Puerto Rico does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

80%

72%

35%

61%

61%

50%

Median target bonus (% of base pay)

22%

12%

11%

8%

8%

3%

Median actual bonus (% of base pay)

15%

11%

14%

8%

8%

3%

© 2016 Mercer LLC.

242

Global Compensation Planning Report — October Update

PUERTO RICO

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE Economic Trends — Latin America, October 2016 Puerto Rico Total Remuneration Survey, June 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Not applicable

October 1, 2016

52

June 1, 2016

Not applicable

October 2016

243

Global Compensation Planning Report — October Update

TRINIDAD AND TOBAGO

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: -2.1%

Inflation, annual average change

2016: -2.8%

2015: 4.7%

2017: 2.3%

Unemployment

2016: 4.8%

2015: 3.6%

2017: 5.3%

2016: 4.0%

2017: 4.0%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

4.8%

5.3%

5.0%

4.8%

5.3%

5.0%

Executive

4.8%

5.3%

5.0%

4.8%

5.3%

5.0%

Management — Nonsales

4.8%

5.3%

5.0%

4.8%

5.3%

5.0%

Professional — Sales

4.8%

5.3%

5.0%

4.8%

5.3%

5.0%

Professional — Nonsales

4.8%

5.3%

5.0%

4.8%

5.3%

5.0%

Para-professional — White collar

4.8%

5.3%

5.0%

4.8%

5.3%

5.0%

Para-professional — Blue collar

4.8%

5.3%

5.0%

4.8%

5.3%

5.0%

© 2016 Mercer LLC.

244

Global Compensation Planning Report — October Update

TRINIDAD AND TOBAGO

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

–

–

–

Executive

–

–

–

Management — Nonsales

–

–

–

Professional — Sales

–

–

–

Professional — Nonsales

–

–

–

Para-professional — White collar

–

–

–

Para-professional — Blue collar

–

–

–

Note: Data are not available.

MANDATORY PAY INCREASE SCHEMES Trinidad and Tobago does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

79%

29%

58%

58%

40%

Median target bonus (% of base pay)

–

15%

12%

9%

9%

–

Median actual bonus (% of base pay)

–

15%

15%

10%

10%

–

© 2016 Mercer LLC.

245

Global Compensation Planning Report — October Update

TRINIDAD AND TOBAGO

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Trinidad and Tobago Total Remuneration Survey, June 2016

29

June 1, 2016

Economic Trends — Latin America, October 2016

Not applicable

October 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

UNITED STATES

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 2.6%

Inflation, annual average change

2016: 1.6%

2015: 0.1%

2017: 2.2%

Unemployment

2016: 1.2%

2015: 5.3%

2017: 2.3%

2016: 4.9%

2017: 4.8%

BASE SALARY INCREASES SALARY INCREASES AVERAGE SALARY INCREASES EXCLUDING ZEROES

AVERAGE SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

2.9%

2.9%

2.9%

2.8%

2.8%

2.9%

Executive

3.0%

3.0%

3.0%

2.9%

2.7%

2.9%

Management — Nonsales

2.9%

2.9%

2.9%

2.8%

2.7%

2.9%

Professional — Sales

2.9%

2.9%

2.9%

2.8%

2.7%

2.8%

Professional — Nonsales

2.9%

2.9%

2.9%

2.8%

2.7%

2.9%

Para-professional — White collar

2.9%

2.9%

2.9%

2.8%

2.7%

2.9%

Para-professional — Blue collar

2.8%

2.8%

2.9%

2.7%

2.6%

2.8%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

UNITED STATES

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

4%

7%

2%

Executive

5%

8%

2%

Management — Nonsales

4%

6%

2%

Professional — Sales

4%

7%

3%

Professional — Nonsales

3%

6%

2%

Para-professional — White collar

3%

6%

2%

Para-professional — Blue collar

4%

7%

3%

MANDATORY PAY INCREASE SCHEMES The United States does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

98%

98%

82%

86%

70%

68%

Median target bonus (% of base pay)

39%

17%

16%

10%

5%

5%

Median actual bonus (% of base pay)

39%

17%

15%

10%

5%

5%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

UNITED STATES

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Information Technology

Professional — Nonsales

Information Technology

Professional — Nonsales

Engineering

Professional — Nonsales

Engineering

Professional — Nonsales

Sales

Professional — Sales

Sales

Professional — Sales

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

1,222

June 2016

Not applicable

October 2016

2016/2017 US Compensation Planning Survey, September 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

249

Global Compensation Planning Report — October Update

URUGUAY

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 1.0%

Inflation, annual average change

2016: 0.1%

2015: 8.7%

2017: 1.2%

Unemployment

2016: 10.2%

2015: 7.5%

2017: 8.7%

2016: 7.9%

2017: 8.5%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

11.0%

10.0%

10.2%

11.0%

10.0%

10.2%

Executive

11.0%

10.0%

10.2%

11.0%

10.0%

10.2%

Management — Nonsales

11.0%

10.0%

10.2%

11.0%

10.0%

10.2%

Professional — Sales

11.0%

10.0%

10.2%

11.0%

10.0%

10.2%

Professional — Nonsales

11.0%

10.0%

10.2%

11.0%

10.0%

10.2%

Para-professional — White collar

11.0%

10.0%

10.2%

11.0%

10.0%

10.2%

Para-professional — Blue collar

11.0%

10.0%

10.2%

11.0%

10.0%

10.2%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

URUGUAY

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

–

–

–

Executive

–

–

–

Management — Nonsales

–

–

–

Professional — Sales

–

–

–

Professional — Nonsales

–

–

–

Para-professional — White collar

–

–

–

Para-professional — Blue collar

–

–

–

Note: Data are not available.

MANDATORY PAY INCREASE SCHEMES Uruguay has salary committees formed by representatives of the government, employees, and employers. The bargaining occurs twice a year, in January and July, for almost all industries represented by different councils. These increases mix an inflation forecasted quote with the sector expected growth and a correction of the previous forecast versus reality.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

94%

91%

56%

73%

73%

17%

Median target bonus (% of base pay)

22%

19%

11%

9%

9%

–

Median actual bonus (% of base pay)

25%

14%

10%

8%

8%

–

© 2016 Mercer LLC.

251

Global Compensation Planning Report — October Update

URUGUAY

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE Economic Trends — Latin America, October 2016 Uruguay Total Remuneration Survey, July 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Not applicable

October 1, 2016

106

July 1, 2016

Not applicable

October 2016

252

Global Compensation Planning Report — October Update

VENEZUELA

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

–

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: -6.2%

Inflation, annual average change

2016: -10.0%

2015: 121.7%

2017: -4.5%

Unemployment

2016: 475.8%

2015: 7.4%

2017: 1660.1%

2016: 18.1%

2017: 21.4%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

88.9%

167.1%

190.2%

88.9%

167.1%

190.2%

Executive

88.9%

167.1%

190.2%

88.9%

167.1%

190.2%

Management — Nonsales

88.9%

167.1%

190.2%

88.9%

167.1%

190.2%

Professional — Sales

88.9%

167.1%

190.2%

88.9%

167.1%

190.2%

Professional — Nonsales

88.9%

167.1%

190.2%

88.9%

167.1%

190.2%

Para-professional — White collar

88.9%

167.1%

190.2%

88.9%

167.1%

190.2%

Para-professional — Blue collar

88.9%

167.1%

190.2%

88.9%

167.1%

190.2%

© 2016 Mercer LLC.

253

Global Compensation Planning Report — October Update

VENEZUELA

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

–

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

–

–

–

Executive

–

–

–

Management — Nonsales

–

–

–

Professional — Sales

–

–

–

Professional — Nonsales

–

–

–

Para-professional — White collar

–

–

–

Para-professional — Blue collar

–

–

–

Note: Data are not available.

MANDATORY PAY INCREASE SCHEMES March: 20% increase (Bs.11.578) food coupon (Bs.13.275) May: 30% increase (Bs.15.051) food coupon (Bs.18.585) September: 50% increase (Bs.22.576,76) food coupon (Bs.42.480) Actual

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

88%

84%

49%

61%

61%

19%

Median target bonus (% of base pay)

26%

16%

12%

10%

10%

9%

Median actual bonus (% of base pay)

16%

11%

8%

7%

7%

4%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

VENEZUELA

Data for 2015

Actual

Data for 2016

Estimated

Data for 2017

–

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Economic Trends — Latin America, October 2016

Not applicable

October 1, 2016

Venezuela Total Remuneration Survey, May 2016

166

May 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

255

Global Compensation Planning Report — October Update

ASIA PACIFIC

AUSTRALIA

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 2.4%

Inflation, annual average change

2016: 2.9%

2015: 1.5%

2017: 2.7%

Unemployment

2016: 1.3%

2015: 6.1%

2017: 2.1%

2016: 5.7%

2017: 5.7%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

3.0%

3.0%

3.0%

3.0%

3.0%

3.0%

Executive

3.0%

3.0%

3.0%

3.0%

3.0%

3.0%

Management — Nonsales

3.0%

3.0%

3.0%

3.0%

3.0%

3.0%

Professional — Sales

3.0%

3.0%

3.0%

3.0%

3.0%

3.0%

Professional — Nonsales

3.0%

3.0%

3.0%

3.0%

3.0%

3.0%

Para-professional — White collar

3.0%

3.0%

3.0%

3.0%

3.0%

3.0%

Para-professional — Blue collar

3.0%

3.0%

3.0%

3.0%

3.0%

3.0%

© 2016 Mercer LLC.

257

Global Compensation Planning Report — October Update

AUSTRALIA

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

11%

9%

5%

Executive

12%

12%

7%

Management — Nonsales

9%

6%

4%

Professional — Sales

7%

6%

2%

Professional — Nonsales

9%

7%

4%

Para-professional — White collar

9%

7%

4%

Para-professional — Blue collar

15%

10%

8%

MANDATORY PAY INCREASE SCHEMES Australia does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

84%

89%

53%

81%

62%

30%

Median target bonus (% of base pay)

25%

15%

10%

10%

7%

6%

Median maximum bonus (% of base pay)

40%

25%

20%

18%

10%

10%

© 2016 Mercer LLC.

258

Global Compensation Planning Report — October Update

AUSTRALIA

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Sales

Professional — Experienced, Management — Manager

Sales

Professional — Experienced, Professional — Senior

Marketing

Management — Senior

Finance

Professional — Experienced

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

706

July 1, 2016

Not applicable

October 2016

Australia Total Remuneration Survey, July 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

259

Global Compensation Planning Report — October Update

BANGLADESH

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.8%

Inflation, annual average change

2016: 6.9%

2015: 6.4%

2017: 6.9%

Unemployment

2016: 6.7%

2015: 4.4%

2017: 6.9%

2016: 4.4%

2017: 4.4%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

10.0%

9.0%

10.0%

10.0%

8.3%

10.0%

Executive

10.9%

9.8%

11.7%

10.4%

9.5%

11.0%

Management — Nonsales

10.2%

9.5%

11.0%

10.0%

8.7%

10.3%

Professional — Sales

11.0%

10.4%

11.3%

10.8%

9.5%

10.5%

Professional — Nonsales

10.6%

9.5%

10.3%

10.4%

9.5%

10.0%

Para-professional — White collar

10.4%

9.5%

10.0%

9.0%

8.3%

8.0%

Para-professional — Blue collar

10.9%

9.5%

10.3%

10.0%

8.8%

7.0%

© 2016 Mercer LLC.

260

Global Compensation Planning Report — October Update

BANGLADESH

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

6%

8%

12%

Executive

9%

10%

16%

Management — Nonsales

8%

9%

15%

Professional — Sales

9%

10%

16%

Professional — Nonsales

9%

9%

16%

Para-professional — White collar

13%

13%

20%

Para-professional — Blue collar

18%

19%

33%

MANDATORY PAY INCREASE SCHEMES Bangladesh does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

94%

91%

93%

96%

82%

Median target bonus (% of base pay)

20%

15%

–

10%

–

–

Median maximum bonus (% of base pay)

26%

23%

–

16%

–

–

© 2016 Mercer LLC.

261

Global Compensation Planning Report — October Update

BANGLADESH

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Sales

–

Sales

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

88

June 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

Bangladesh Total Remuneration Survey, June 2016

© 2016 Mercer LLC.

262

Global Compensation Planning Report — October Update

CAMBODIA

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 7.0%

Inflation, annual average change

2016: 7.0%

2015: 1.2%

2017: 6.9%

Unemployment

2016: 3.1%

2015: 0.5%

2017: 2.7%

2016: 0.6%

2017: 0.6%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

6.5%

6.9%

7.0%

6.5%

6.9%

7.0%

Executive

4.8%

5.0%

7.0%

4.3%

4.5%

6.8%

Management — Nonsales

7.0%

6.8%

7.0%

7.0%

6.8%

7.0%

Professional — Sales

6.7%

7.0%

7.0%

6.4%

7.0%

7.0%

Professional — Nonsales

6.7%

6.3%

6.4%

6.3%

6.3%

6.4%

Para-professional — White collar

7.0%

6.8%

6.3%

7.0%

6.8%

6.3%

Para-professional — Blue collar

7.0%

7.0%

7.5%

7.0%

7.0%

7.5%

© 2016 Mercer LLC.

263

Global Compensation Planning Report — October Update

CAMBODIA

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

0%

0%

0%

Executive

17%

15%

8%

Management — Nonsales

7%

0%

0%

Professional — Sales

9%

0%

0%

Professional — Nonsales

7%

0%

0%

Para-professional — White collar

0%

0%

0%

Para-professional — Blue collar

8%

0%

0%

Note: Data are not available.

MANDATORY PAY INCREASE SCHEMES Cambodia does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

60%

89%

49%

100%

56%

37%

Median target bonus (% of base pay)

18%

17%

15%

13%

17%

17%

Median maximum bonus (% of base pay)

33%

22%

20%

18%

16%

17%

© 2016 Mercer LLC.

264

Global Compensation Planning Report — October Update

CAMBODIA

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

Sales

Management — Manager, Professional — Senior, Professional — Experienced

JOB FAMILY

LEVEL

Sales

Management — Senior, Management — Manager

Marketing

Management — Manager

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

45

April 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

Cambodia Total Remuneration Survey, April 2016

© 2016 Mercer LLC.

265

Global Compensation Planning Report — October Update

CHINA–BEIJING

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.9%

Inflation, annual average change

2016: 6.6%

2015: 1.4%

2017: 6.2%

Unemployment

2016: 2.1%

2015: 4.1%

2017: 2.3%

2016: 4.1%

2017: 4.1%

Note: GDP, inflation, and unemployment figures are for China.

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.0%

6.0%

6.5%

7.0%

6.0%

6.5%

Executive

7.0%

6.0%

6.5%

6.9%

6.0%

6.1%

Management — Nonsales

7.0%

6.0%

6.5%

7.0%

6.0%

6.5%

Professional — Sales

7.0%

6.0%

6.6%

7.0%

6.0%

6.5%

Professional — Nonsales

7.1%

6.3%

6.8%

7.0%

6.2%

6.5%

Para-professional — White collar

7.0%

6.0%

6.5%

7.0%

6.0%

6.5%

Para-professional — Blue collar

7.3%

6.0%

6.9%

7.1%

6.0%

6.8%

© 2016 Mercer LLC.

266

Global Compensation Planning Report — October Update

CHINA–BEIJING

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

2%

4%

2%

Executive

5%

6%

4%

Management — Nonsales

2%

3%

2%

Professional — Sales

2%

3%

1%

Professional — Nonsales

3%

3%

2%

Para-professional — White collar

3%

3%

2%

Para-professional — Blue collar

4%

3%

2%

Note: Data are not available.

MANDATORY PAY INCREASE SCHEMES China–Beijing does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

84%

96%

54%

95%

85%

50%

Median target bonus (% of base pay)

25%

18%

18%

15%

14%

15%

Median maximum bonus (% of base pay)

35%

28%

25%

22%

20%

20%

© 2016 Mercer LLC.

267

Global Compensation Planning Report — October Update

CHINA–BEIJING

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Sales

Individual professional

Sales

Individual professional

Engineering

Individual professional

Research and Development

Individual professional

Marketing

Management

Marketing

Management

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

China–Beijing Total Remuneration Survey All Industries Office Survey, June 2016

917

June 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

© 2016 Mercer LLC.

268

Global Compensation Planning Report — October Update

CHINA–CHANGSHA

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.9%

Inflation, annual average change

2016: 6.6%

2015: 1.4%

2017: 6.2%

Unemployment

2016: 2.1%

2015: 4.1%

2017: 2.3%

2016: 4.1%

2017: 4.1%

Note: GDP, inflation, and unemployment figures are for China.

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.0%

6.2%

6.8%

7.0%

6.2%

6.8%

Executive

7.4%

6.5%

7.0%

–

6.0%

–

Management — Nonsales

7.3%

6.0%

7.0%

–

6.0%

–

Professional — Sales

7.0%

6.0%

7.0%

–

6.0%

–

Professional — Nonsales

7.5%

6.5%

7.0%

–

6.5%

–

Para-professional — White collar

7.2%

6.5%

7.0%

–

6.5%

–

Para-professional — Blue collar

7.6%

6.5%

7.0%

–

6.5%

–

Note: Data including zeroes are not available.

© 2016 Mercer LLC.

269

Global Compensation Planning Report — October Update

CHINA–CHANGSHA

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

1%

0%

0%

Executive

–

11%

–

Management — Nonsales

–

1%

–

Professional — Sales

–

4%

–

Professional — Nonsales

–

1%

–

Para-professional — White collar

–

0%

–

Para-professional — Blue collar

–

0%

–

All employees

MANDATORY PAY INCREASE SCHEMES China–Changsha does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

93%

95%

44%

94%

84%

58%

Median target bonus (% of base pay)

25%

20%

23%

17%

15%

15%

Median maximum bonus (% of base pay)

43%

30%

26%

25%

23%

21%

© 2016 Mercer LLC.

270

Global Compensation Planning Report — October Update

CHINA–CHANGSHA

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Marketing

Management

Sales

Professional

Sales

Professional

Marketing

Management

Research & Development

Professional

Engineering

Para-Professional

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

China–Changsha Total Remuneration Survey All Industries Survey, June 2016

130

June 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

271

Global Compensation Planning Report — October Update

CHINA–CHANGZHOU

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.9%

Inflation, annual average change

2016: 6.6%

2015: 1.4%

2017: 6.2%

Unemployment

2016: 2.1%

2015: 4.1%

2017: 2.3%

2016: 4.1%

2017: 4.1%

Note: GDP, inflation, and unemployment figures are for China.

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.0%

6.4%

6.5%

7.0%

6.0%

6.5%

Executive

7.0%

6.0%

6.0%

7.0%

5.9%

6.0%

Management — Nonsales

7.0%

6.0%

6.0%

7.0%

6.0%

6.0%

Professional — Sales

7.0%

5.5%

6.0%

7.0%

5.5%

6.0%

Professional — Nonsales

7.0%

6.0%

6.0%

7.0%

6.0%

6.0%

Para-professional — White collar

7.0%

6.0%

6.0%

7.0%

6.0%

6.0%

Para-professional — Blue collar

7.6%

6.4%

7.0%

7.5%

6.4%

6.9%

© 2016 Mercer LLC.

272

Global Compensation Planning Report — October Update

CHINA–CHANGZHOU

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

3%

4%

0%

Executive

8%

3%

0%

Management — Nonsales

5%

3%

0%

Professional — Sales

6%

6%

0%

Professional — Nonsales

6%

4%

1%

Para-professional — White collar

7%

5%

2%

Para-professional — Blue collar

8%

6%

3%

MANDATORY PAY INCREASE SCHEMES China–Changzhou does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

81%

96%

50%

94%

85%

79%

Median target bonus (% of base pay)

22%

19%

16%

15%

15%

15%

Median maximum bonus (% of base pay)

31%

22%

20%

17%

20%

20%

© 2016 Mercer LLC.

273

Global Compensation Planning Report — October Update

CHINA–CHANGZHOU

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

Process engineer

Manufacturing

Production worker (skilled)

Manufacturing

Production worker (skilled)

Sales

Sales representive — Experienced

Sales

Sales representive — Technical sales

Engineering

Process engineer

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

China–Changsha Total Remuneration Survey All Industries Survey, June 2016

123

June 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

274

Global Compensation Planning Report — October Update

CHINA–CHENGDU

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.9%

Inflation, annual average change

2016: 6.6%

2015: 1.4%

2017: 6.2%

Unemployment

2016: 2.1%

2015: 4.1%

2017: 2.3%

2016: 4.1%

2017: 4.1%

Note: GDP, inflation, and unemployment figures are for China.

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.0%

6.0%

6.0%

7.0%

5.9%

–

Executive

7.0%

6.0%

6.0%

7.0%

6.0%

–

Management — Nonsales

7.0%

6.0%

6.1%

7.0%

6.0%

–

Professional — Sales

7.0%

6.0%

6.0%

7.0%

6.0%

–

Professional — Nonsales

7.0%

6.0%

6.1%

7.0%

6.0%

–

Para-professional — White collar

7.0%

6.0%

6.3%

6.7%

6.0%

–

Para-professional — Blue collar

7.0%

6.0%

6.0%

7.0%

6.0%

–

© 2016 Mercer LLC.

275

Global Compensation Planning Report — October Update

CHINA–CHENGDU

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

2%

1%

–

Executive

6%

4%

–

Management — Nonsales

5%

0%

–

Professional — Sales

4%

0%

–

Professional — Nonsales

4%

0%

–

Para-professional — White collar

4%

0%

–

Para-professional — Blue collar

6%

0%

–

MANDATORY PAY INCREASE SCHEMES China–Chengdu does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

93%

97%

65%

96%

90%

73%

Median target bonus (% of base pay)

26%

18%

15%

15%

14%

13%

Median maximum bonus (% of base pay)

40%

30%

22%

24%

20%

23%

© 2016 Mercer LLC.

276

Global Compensation Planning Report — October Update

CHINA–CHENGDU

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

Professional

Sales

Professional, Management

Product/Brand Management

Professional

Engineering

Professional

Sales

Professional

SOURCES SOURCE China–Chengdu All Industries Total Renumeration Survey, July 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

166

July 1, 2016

Not applicable

October 2016

277

Global Compensation Planning Report — October Update

CHINA–CHONGQING

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.9%

Inflation, annual average change

2016: 6.6%

2015: 1.4%

2017: 6.2%

Unemployment

2016: 2.1%

2015: 4.1%

2017: 2.3%

2016: 4.1%

2017: 4.1%

Note: GDP, inflation, and unemployment figures are for China.

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.0%

6.0%

7.0%

–

–

–

Executive

6.9%

6.0%

6.0%

–

–

–

Management — Nonsales

7.0%

6.2%

7.0%

–

–

–

Professional — Sales

7.0%

6.0%

7.0%

–

–

–

Professional — Nonsales

7.0%

6.0%

7.0%

–

–

–

Para-professional — White collar

7.0%

6.0%

6.5%

–

–

–

Para-professional — Blue collar

7.5%

7.0%

7.0%

–

–

–

Note: Data including zeroes are not available.

© 2016 Mercer LLC.

278

Global Compensation Planning Report — October Update

CHINA–CHONGQING

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

–

–

–

Executive

–

–

–

Management — Nonsales

–

–

–

Professional — Sales

–

–

–

Professional — Nonsales

–

–

–

Para-professional — White collar

–

–

–

Para-professional — Blue collar

–

–

–

Note: Data are not available.

MANDATORY PAY INCREASE SCHEMES China–Chongqing does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

82%

95%

50%

93%

85%

58%

Median target bonus (% of base pay)

25%

20%

17%

15%

15%

15%

Median maximum bonus (% of base pay)

40%

30%

25%

23%

23%

24%

© 2016 Mercer LLC.

279

Global Compensation Planning Report — October Update

CHINA–CHONGQING

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

Professional — Experienced

Sales

Professional — Experienced

Sales

Professional — Experienced

Manufacturing

Professional — Experienced

Research and Development

Professional — Experienced

Engineering

Professional — Experienced

SOURCES SOURCE China–Chongqing All Industries Total Renumeration Survey, July 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

173

July 1, 2016

Not applicable

October 2016

280

Global Compensation Planning Report — October Update

CHINA–DALIAN

Data for 2015

Awarded

Data for 2016

Awarded/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.9%

Inflation, annual average change

2016: 6.6%

2015: 1.4%

2017: 6.2%

Unemployment

2016: 2.1%

2015: 4.1%

2017: 2.3%

2016: 4.1%

2017: 4.1%

Note: GDP, inflation, and unemployment figures are for China.

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

6.9%

6.0%

6.5%

6.9%

6.0%

6.5%

Executive

6.6%

6.0%

6.0%

6.3%

6.0%

6.0%

Management — Nonsales

7.0%

6.0%

6.0%

6.8%

6.0%

6.0%

Professional — Sales

7.0%

6.0%

6.0%

7.0%

6.0%

6.0%

Professional — Nonsales

7.0%

6.1%

6.1%

7.0%

6.0%

6.1%

Para-professional — White collar

7.0%

6.0%

6.5%

7.0%

6.0%

6.5%

Para-professional — Blue collar

7.0%

6.0%

6.5%

7.0%

6.0%

6.5%

© 2016 Mercer LLC.

281

Global Compensation Planning Report — October Update

CHINA–DALIAN

Data for 2015

Awarded

Data for 2016

Awarded/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

2%

1%

2%

Executive

4%

4%

1%

Management — Nonsales

2%

2%

1%

Professional — Sales

1%

3%

1%

Professional — Nonsales

2%

1%

1%

Para-professional — White collar

2%

1%

1%

Para-professional — Blue collar

2%

1%

1%

MANDATORY PAY INCREASE SCHEMES China–Dalian does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

96%

99%

68%

98%

95%

82%

Median target bonus (% of base pay)

25%

18%

17%

15%

15%

15%

Median maximum bonus (% of base pay)

40%

30%

24%

22%

22%

21%

© 2016 Mercer LLC.

282

Global Compensation Planning Report — October Update

CHINA–DALIAN

Data for 2015

Awarded

Data for 2016

Awarded/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineer

Professional

Sales

Professional

Sales

Professional

Sales

Management

Sales

Management

Engineer

Professional

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

China Dalian All Industries Total Remuneration Survey, July 2016

235

July 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

283

Global Compensation Planning Report — October Update

CHINA–GUANGDONG

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.9%

Inflation, annual average change

2016: 6.6%

2015: 1.4%

2017: 6.2%

Unemployment

2016: 2.1%

2015: 4.1%

2017: 2.3%

2016: 4.1%

2017: 4.1%

Note: GDP, inflation, and unemployment figures are for China.

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.0%

6.0%

6.5%

7.0%

6.0%

6.5%

Executive

7.0%

6.0%

7.0%

7.0%

6.0%

6.7%

Management — Nonsales

7.0%

6.5%

7.0%

7.0%

6.4%

7.0%

Professional — Sales

7.0%

6.2%

7.0%

7.0%

6.1%

7.0%

Professional — Nonsales

7.3%

6.7%

7.0%

7.3%

6.7%

7.0%

Para-professional — White collar

7.0%

6.5%

7.0%

7.0%

6.4%

7.0%

–

–

–

–

–

–

Para-professional — Blue collar

© 2016 Mercer LLC.

284

Global Compensation Planning Report — October Update

CHINA–GUANGDONG

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

2%

2%

1%

Executive

4%

6%

3%

Management — Nonsales

2%

2%

1%

Professional — Sales

2%

3%

1%

Professional — Nonsales

1%

2%

1%

Para-professional — White collar

2%

2%

1%

–

–

–

Para-professional — Blue collar

MANDATORY PAY INCREASE SCHEMES China–Guangdong does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

83%

96%

52%

93%

82%

–

Median target bonus (% of base pay)

25%

18%

20%

15%

15%

–

Median maximum bonus (% of base pay)

38%

29%

25%

22%

20%

–

© 2016 Mercer LLC.

285

Global Compensation Planning Report — October Update

CHINA–GUANGDONG

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

Individual Professional — Experienced

Sales

Sales

Management — Manager and Individual Professional — Experienced

Individual Professional — Senior and Experienced

Engineering

Individual Professional — Experienced

SOURCES SOURCE China–Guangdong Total Remuneration Survey All Industries Office Survey, June 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

694

June 1, 2016

Not applicable

October 2016

286

Global Compensation Planning Report — October Update

CHINA–HANGZHOU–NINGBO

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.9%

Inflation, annual average change

2016: 6.6%

2015: 1.4%

2017: 6.2%

Unemployment

2016: 2.1%

2015: 4.1%

2017: 2.3%

2016: 4.1%

2017: 4.1%

Note: GDP, inflation, and unemployment figures are for China.

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.0%

6.2%

6.5%

–

–

–

Executive

7.0%

6.0%

6.0%

–

–

–

Management — Nonsales

7.0%

6.0%

6.8%

–

–

–

Professional — Sales

7.0%

6.0%

7.0%

–

–

–

Professional — Nonsales

7.0%

6.3%

7.0%

–

–

–

Para-professional — White collar

7.0%

6.0%

7.0%

–

–

–

Para-professional — Blue collar

7.5%

6.4%

7.0%

–

–

–

Note: Data including zeroes are not available.

© 2016 Mercer LLC.

287

Global Compensation Planning Report — October Update

CHINA–HANGZHOU–NINGBO

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

–

–

–

Executive

–

–

–

Management — Nonsales

–

–

–

Professional — Sales

–

–

–

Professional — Nonsales

–

–

–

Para-professional — White collar

–

–

–

Para-professional — Blue collar

–

–

–

MANDATORY PAY INCREASE SCHEMES China–Hangzhou–Ningbo does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

87%

97%

53%

96%

86%

65%

Median target bonus (% of base pay)

25%

20%

18%

17%

15%

15%

Median maximum bonus (% of base pay)

38%

30%

25%

25%

23%

25%

© 2016 Mercer LLC.

288

Global Compensation Planning Report — October Update

CHINA–HANGZHOU–NINGBO

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Sales

Sales representative

Sales

Sales representative — Senior

Engineering

Process engineer

Manufacturing

Production worker

Research and Development

Senior research and Development engineer

Research and Development

Research and Development engineer

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

China–Hangzhou–Ningbo All Industries Total Renumeration Survey, July 2016

187

July 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

289

Global Compensation Planning Report — October Update

CHINA–HEFEI–WUHU

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.9%

Inflation, annual average change

2016: 6.6%

2015: 1.4%

2017: 6.2%

Unemployment

2016: 2.1%

2015: 4.1%

2017: 2.3%

2016: 4.1%

2017: 4.1%

Note: GDP, inflation, and unemployment figures are for China.

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.0%

6.3%

6.7%

7.0%

6.3%

6.7%

Executive

7.0%

6.2%

6.5%

6.9%

–

–

Management — Nonsales

7.1%

6.3%

6.6%

7.0%

–

–

Professional — Sales

7.0%

6.0%

6.6%

7.0%

–

–

Professional — Nonsales

7.3%

6.3%

6.8%

7.0%

–

–

Para-professional — White collar

7.0%

6.5%

7.0%

7.0%

–

–

Para-professional — Blue collar

7.6%

7.0%

7.0%

7.5%

–

–

Note: Data including zeroes are not available.

© 2016 Mercer LLC.

290

Global Compensation Planning Report — October Update

CHINA–HEFEI–WUHU

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

4%

0%

0%

Executive

6%

–

–

Management — Nonsales

5%

–

–

Professional — Sales

4%

–

–

Professional — Nonsales

5%

–

–

Para-professional — White collar

5%

–

–

Para-professional — Blue collar

5%

–

–

MANDATORY PAY INCREASE SCHEMES China–Hefei–Wuhu does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

93%

96%

48%

95%

87%

61%

Median target bonus (% of base pay)

25%

19%

22%

15%

14%

14%

Median maximum bonus (% of base pay)

44%

30%

29%

25%

23%

22%

© 2016 Mercer LLC.

291

Global Compensation Planning Report — October Update

CHINA–HEFEI–WUHU

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Marketing

Professional

Sales

Management

Sales

Management

Marketing

Management

Marketing

Management

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Hefei/Wuhu All Industries Total Remuneration Survey, June 2016

133

June 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

292

Global Compensation Planning Report — October Update

CHINA–NANJING

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.9%

Inflation, annual average change

2016: 6.6%

2015: 1.4%

2017: 6.2%

Unemployment

2016: 2.1%

2015: 4.1%

2017: 2.3%

2016: 4.1%

2017: 4.1%

Note: GDP, inflation, and unemployment figures are for China.

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.0%

6.0%

6.5%

7.0%

6.0%

6.5%

Executive

6.0%

5.9%

6.0%

6.0%

5.5%

6.0%

Management — Nonsales

7.0%

6.0%

6.5%

7.0%

6.0%

6.5%

Professional — Sales

6.5%

6.0%

6.3%

6.4%

5.9%

6.0%

Professional — Nonsales

7.0%

6.0%

6.5%

7.0%

6.0%

6.5%

Para-professional — White collar

7.0%

6.0%

6.5%

7.0%

6.0%

6.5%

Para-professional — Blue collar

7.0%

6.1%

7.0%

7.0%

6.0%

6.7%

© 2016 Mercer LLC.

293

Global Compensation Planning Report — October Update

CHINA–NANJING

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

0%

3%

0%

Executive

8%

6%

4%

Management — Nonsales

3%

3%

1%

Professional — Sales

5%

5%

1%

Professional — Nonsales

4%

3%

2%

Para-professional — White collar

4%

3%

2%

Para-professional — Blue collar

5%

4%

4%

MANDATORY PAY INCREASE SCHEMES China–Nanjing does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

87%

98%

45%

97%

90%

74%

Median target bonus (% of base pay)

25%

19%

18%

16%

15%

17%

Median maximum bonus (% of base pay)

40%

30%

28%

23%

22%

23%

© 2016 Mercer LLC.

294

Global Compensation Planning Report — October Update

CHINA–NANJING

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

Professional — Senior

Engineering

Professional — Experienced

Research and Development

Professional — Experienced

Sales

Professional — Experienced

Sales

Professional — Experienced

Manufacturing

Professional — Experienced

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

China–Nanjing Total Remuneration Survey All Industries Office Survey, June 2016

208

June 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

© 2016 Mercer LLC.

295

Global Compensation Planning Report — October Update

CHINA–QINGDAO

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.9%

Inflation, annual average change

2016: 6.6%

2015: 1.4%

2017: 6.2%

Unemployment

2016: 2.1%

2015: 4.1%

2017: 2.3%

2016: 4.1%

2017: 4.1%

Note: GDP, inflation, and unemployment figures are for China.

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.0%

6.0%

6.0%

7.0%

6.0%

6.0%

Executive

7.0%

5.9%

6.0%

6.9%

5.6%

6.0%

Management — Nonsales

7.0%

5.8%

6.0%

7.0%

5.7%

6.0%

Professional — Sales

7.0%

6.0%

6.0%

7.0%

5.8%

6.0%

Professional — Nonsales

7.0%

6.0%

6.0%

7.0%

6.0%

6.0%

Para-professional — White collar

7.0%

6.0%

6.0%

7.0%

6.0%

6.0%

Para-professional — Blue collar

7.4%

6.0%

6.9%

7.2%

6.0%

6.9%

© 2016 Mercer LLC.

296

Global Compensation Planning Report — October Update

CHINA–QINGDAO

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

3%

3%

0%

Executive

8%

7%

4%

Management — Nonsales

4%

2%

0%

Professional — Sales

5%

4%

0%

Professional — Nonsales

4%

2%

0%

Para-professional — White collar

3%

0%

0%

Para-professional — Blue collar

3%

0%

0%

MANDATORY PAY INCREASE SCHEMES China–Qingdao does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

86%

99%

45%

94%

88%

69%

Median target bonus (% of base pay)

23%

19%

16%

15%

15%

15%

Median maximum bonus (% of base pay)

35%

30%

21%

23%

22%

22%

© 2016 Mercer LLC.

297

Global Compensation Planning Report — October Update

CHINA–QINGDAO

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

Professional

Sales

Professional

Sales

Professional

Engineering

Professional

Marketing

Management

Research and Development

Professional

SOURCES SOURCE China Qingdao All Industries Total Remuneration Survey, July 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

173

July 1, 2016

Not applicable

October 2016

298

Global Compensation Planning Report — October Update

CHINA–SHANGHAI

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.9%

Inflation, annual average change

2016: 6.6%

2015: 1.4%

2017: 6.2%

Unemployment

2016: 2.1%

2015: 4.1%

2017: 2.3%

2016: 4.1%

2017: 4.1%

Note: GDP, inflation, and unemployment figures are for China.

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.0%

6.0%

6.5%

7.0%

6.0%

6.5%

Executive

7.0%

6.0%

6.0%

7.0%

6.0%

6.0%

Management — Nonsales

7.0%

6.0%

6.0%

7.0%

6.0%

6.0%

Professional — Sales

7.0%

6.0%

6.5%

7.0%

6.0%

6.5%

Professional — Nonsales

7.3%

6.1%

6.5%

7.2%

6.0%

6.5%

Para-professional — White collar

7.0%

6.0%

6.5%

7.0%

6.0%

6.5%

–

–

–

–

–

–

Para-professional — Blue collar

© 2016 Mercer LLC.

299

Global Compensation Planning Report — October Update

CHINA–SHANGHAI

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

1.4%

3.3%

0.6%

Executive

4.1%

5.7%

1.7%

Management — Nonsales

2.0%

2.9%

0.6%

Professional — Sales

1.8%

3.4%

0.5%

Professional — Nonsales

1.5%

2.8%

0.6%

Para-professional — White collar

1.5%

3.2%

0.7%

–

–

–

Para-professional — Blue collar

MANDATORY PAY INCREASE SCHEMES China–Shanghai does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

96%

99%

70%

96%

92%

–

Median target bonus (% of base pay)

24%

18%

18%

15%

14%

–

Median maximum bonus (% of base pay)

36%

27%

23%

23%

20%

–

© 2016 Mercer LLC.

300

Global Compensation Planning Report — October Update

CHINA–SHANGHAI

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

Professional — Senior

Sales

Sales

Management — Manager, Professional — Senior

Management — Manager, Professional — Senior

Engineering

Professional — Senior

SOURCES SOURCE China–Shanghai TRS All Industries Office Survey, June 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

1,046

June 1, 2016

Not applicable

October 2016

301

Global Compensation Planning Report — October Update

CHINA–SHENYANG–CHANGCHUN

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.9%

Inflation, annual average change

2016: 6.6%

2015: 1.4%

2017: 6.2%

Unemployment

2016: 2.1%

2015: 4.1%

2017: 2.3%

2016: 4.1%

2017: 4.1%

Note: GDP, inflation, and unemployment figures are for China.

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.0%

6.0%

6.3%

7.0%

6.0%

6.0%

Executive

6.8%

6.0%

6.0%

6.7%

6.0%

6.0%

Management — Nonsales

7.0%

6.0%

6.0%

6.9%

6.0%

6.0%

Professional — Sales

7.0%

6.0%

6.0%

7.0%

6.0%

6.5%

Professional — Nonsales

7.3%

6.0%

6.0%

7.0%

6.0%

6.0%

Para-professional — White collar

7.0%

6.0%

6.0%

7.0%

6.0%

6.0%

Para-professional — Blue collar

7.0%

6.0%

6.9%

7.0%

6.0%

6.9%

© 2016 Mercer LLC.

302

Global Compensation Planning Report — October Update

CHINA–SHENYANG–CHANGCHUN

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

2%

1%

1%

Executive

13%

4%

4%

Management — Nonsales

8%

2%

1%

Professional — Sales

10%

5%

1%

Professional — Nonsales

8%

2%

1%

Para-professional — White collar

9%

3%

1%

Para-professional — Blue collar

11%

5%

1%

MANDATORY PAY INCREASE SCHEMES China–Shenyang–Changchun does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

86%

97%

51%

96%

89%

65%

Median target bonus (% of base pay)

25%

20%

19%

15%

14%

15%

Median maximum bonus (% of base pay)

40%

30%

20%

21%

20%

20%

© 2016 Mercer LLC.

303

Global Compensation Planning Report — October Update

CHINA–SHENYANG–CHANGCHUN

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

General Engineer — Senior — Professional

Engineering

General Engineer — Senior — Professional

Research and Development

Research and Development Engineer — Professional

Sales

Sales Representative — Experienced — Professional

Sales

Sales Representative — Experienced Professional

Life Sciences

Specialist/Clinic Sales Representive — Experienced — Professional

SOURCES SOURCE China–Shenyang–Changchun All Industries Total Renumeration Survey, July 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

189

July 1, 2016

Not applicable

October 2016

304

Global Compensation Planning Report — October Update

CHINA–SUZHOU

Data for 2015

Budgeted

Data for 2016

Forecast

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.9%

Inflation, annual average change

2016: 6.6%

2015: 1.4%

2017: 6.2%

Unemployment

2016: 2.1%

2015: 4.1%

2017: 2.3%

2016: 4.1%

2017: 4.1%

Note: GDP, inflation, and unemployment figures are for China.

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.5%

7.5%

–

7.5%

7.5%

–

Executive

7.0%

7.9%

–

7.0%

7.7%

–

Management — Nonsales

7.5%

8.0%

–

7.5%

8.0%

–

Professional — Sales

7.5%

8.0%

–

7.5%

8.0%

–

Professional — Nonsales

8.0%

8.0%

–

8.0%

8.0%

–

Para-professional — White collar

7.9%

8.0%

–

7.9%

8.0%

–

Para-professional — Blue collar

8.0%

8.0%

–

8.0%

8.0%

–

IMPORTANT: Availability of data for some markets was limited at the time of release; this market will be updated in GCPR-Online as data become available.

© 2016 Mercer LLC.

305

Global Compensation Planning Report — October Update

CHINA–SUZHOU

Data for 2015

Budgeted

Data for 2016

Forecast

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

1%

0%

–

Executive

3%

2%

–

Management — Nonsales

1%

0%

–

Professional — Sales

3%

1%

–

Professional — Nonsales

1%

0%

–

Para-professional — White collar

1%

0%

–

Para-professional — Blue collar

1%

0%

–

MANDATORY PAY INCREASE SCHEMES China–Suzhou does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

97%

99%

83%

96%

96%

98%

Median target bonus (% of base pay)

20%

16%

17%

15%

15%

15%

Median maximum bonus (% of base pay)

30%

23%

24%

20%

20%

17%

IMPORTANT: Availability of data for some markets was limited at the time of release; this market contains data collected in 2015.

© 2016 Mercer LLC.

306

Global Compensation Planning Report — October Update

CHINA–SUZHOU

Data for 2015

Budgeted

Data for 2016

Forecast

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

Professional

Engineering

Professional

Quality

Professional

Manufacturing

Para-professional

Research and Development

Professional

Sales

Professional

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

China–Suzhou Total Remuneration Survey All Industries Survey, June 2015

264

June 1, 2015

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

© 2016 Mercer LLC.

307

Global Compensation Planning Report — October Update

CHINA–TIANJIN

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.9%

Inflation, annual average change

2016: 6.6%

2015: 1.4%

2017: 6.2%

Unemployment

2016: 2.1%

2015: 4.1%

2017: 2.3%

2016: 4.1%

2017: 4.1%

Note: GDP, inflation, and unemployment figures are for China.

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.0%

6.0%

6.0%

7.0%

6.0%

6.0%

Executive

6.3%

5.5%

6.0%

6.0%

5.4%

6.0%

Management — Nonsales

7.0%

6.0%

6.0%

7.0%

5.5%

6.0%

Professional — Sales

7.0%

5.3%

6.0%

7.0%

5.2%

6.0%

Professional — Nonsales

7.3%

6.0%

6.0%

7.1%

6.0%

6.0%

Para-professional — White collar

7.3%

6.0%

6.0%

7.0%

5.9%

6.0%

Para-professional — Blue collar

7.7%

6.4%

6.5%

7.6%

6.0%

6.0%

© 2016 Mercer LLC.

308

Global Compensation Planning Report — October Update

CHINA–TIANJIN

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

2%

9%

1%

Executive

9%

7%

2%

Management — Nonsales

0%

7%

0%

Professional — Sales

4%

5%

0%

Professional — Nonsales

18%

7%

1%

Para-professional — White collar

17%

8%

1%

Para-professional — Blue collar

3%

8%

2%

Note: Data are not available.

MANDATORY PAY INCREASE SCHEMES China–Tianjin does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

79%

98%

40%

97%

87%

73%

Median target bonus (% of base pay)

25%

20%

17%

15%

15%

15%

Median maximum bonus (% of base pay)

37%

26%

25%

20%

21%

22%

© 2016 Mercer LLC.

309

Global Compensation Planning Report — October Update

CHINA–TIANJIN

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Manufacturing

Para-professional — Production Worker (Skilled)

Manufacturing

Para-professional — Production worker (Skilled)

Engineering

Professional — Senior engineer

Sales

Professional — Engineer

Sales

Professional — Experienced — Sales representative

Quality

Professional — Engineer

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

China–Tianjin Total Remuneration Survey All Industries Survey, June 2016

201

June 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

© 2016 Mercer LLC.

310

Global Compensation Planning Report — October Update

CHINA–WUHAN

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.9%

Inflation, annual average change

2016: 6.6%

2015: 1.4%

2017: 6.2%

Unemployment

2016: 2.1%

2015: 4.1%

2017: 2.3%

2016: 4.1%

2017: 4.1%

Note: GDP, inflation, and unemployment figures are for China.

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.0%

6.0%

6.5%

7.0%

6.0%

6.5%

Executive

7.0%

6.0%

6.5%

7.0%

6.0%

6.1%

Management — Nonsales

7.2%

6.0%

6.5%

7.1%

6.0%

6.4%

Professional — Sales

7.3%

6.0%

6.5%

7.3%

6.0%

6.5%

Professional — Nonsales

7.4%

6.0%

6.5%

7.4%

6.0%

6.5%

Para-professional — White collar

7.2%

6.0%

6.5%

7.1%

6.0%

6.5%

Para-professional — Blue collar

7.7%

6.0%

6.9%

7.6%

6.0%

6.7%

© 2016 Mercer LLC.

311

Global Compensation Planning Report — October Update

CHINA–WUHAN

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

0%

0%

0%

Executive

5%

7%

3%

Management — Nonsales

2%

2%

1%

Professional — Sales

1%

3%

1%

Professional — Nonsales

1%

2%

1%

Para-professional — White collar

1%

2%

1%

Para-professional — Blue collar

2%

2%

1%

MANDATORY PAY INCREASE SCHEMES China–Wuhan does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

85%

95%

53%

96%

88%

60%

Median target bonus (% of base pay)

25%

19%

17%

15%

15%

15%

Median maximum bonus (% of base pay)

40%

29%

20%

22%

20%

22%

© 2016 Mercer LLC.

312

Global Compensation Planning Report — October Update

CHINA–WUHAN

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Sales

Professional

Sales

Professional

Marketing

Professional

Manufacturing

Para-Professional

Sales

Management

Contact Centre

Professional

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

China–Wuhan All Industries Total Remuneration Survey, July 2016

289

July 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

© 2016 Mercer LLC.

313

Global Compensation Planning Report — October Update

CHINA–WUXI

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.9%

Inflation, annual average change

2016: 6.6%

2015: 1.4%

2017: 6.2%

Unemployment

2016: 2.1%

2015: 4.1%

2017: 2.3%

2016: 4.1%

2017: 4.1%

Note: GDP, inflation, and unemployment figures are for China.

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.0%

6.0%

7.0%

7.0%

6.0%

7.0%

Executive

6.6%

5.9%

6.0%

–

–

–

Management — Nonsales

7.0%

6.0%

6.0%

–

–

–

Professional — Sales

7.4%

6.0%

6.0%

–

–

–

Professional — Nonsales

7.0%

6.0%

6.0%

–

–

–

Para-professional — White collar

7.4%

6.0%

6.0%

–

–

–

Para-professional — Blue collar

8.0%

6.9%

6.0%

–

–

–

Note: Data including zeroes are not available.

© 2016 Mercer LLC.

314

Global Compensation Planning Report — October Update

CHINA–WUXI

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

0.8%

5.2%

1.3%

Executive

–

–

–

Management — Nonsales

–

–

–

Professional — Sales

–

–

–

Professional — Nonsales

–

–

–

Para-professional — White collar

–

–

–

Para-professional — Blue collar

–

–

–

All employees

MANDATORY PAY INCREASE SCHEMES China–Wuxi does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

84%

100%

45%

99%

95%

82%

Median target bonus (% of base pay)

25%

18%

20%

15%

15%

17%

Median maximum bonus (% of base pay)

44%

27%

30%

21%

23%

24%

© 2016 Mercer LLC.

315

Global Compensation Planning Report — October Update

CHINA–WUXI

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

Professional

Engineering

Management

Manufacturing

Para-professional

Manufacturing

Para-professional

Sales

Management

Sales

Professional

SOURCES SOURCE China–Wuxi Total Remuneration Survey All Industries Office Survey, June 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

164

June 1, 2016

Not applicable

October 2016

316

Global Compensation Planning Report — October Update

CHINA–XIAMEN–FUZHOU

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.9%

Inflation, annual average change

2016: 6.6%

2015: 1.4%

2017: 6.2%

Unemployment

2016: 2.1%

2015: 4.1%

2017: 2.3%

2016: 4.1%

2017: 4.1%

Note: GDP, inflation, and unemployment figures are for China.

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.0%

6.0%

7.0%

7.0%

6.0%

7.0%

Executive

7.0%

6.0%

6.8%

7.0%

6.0%

6.5%

Management — Nonsales

7.1%

6.3%

7.0%

7.0%

6.1%

7.0%

Professional — Sales

7.2%

6.0%

7.0%

7.1%

6.0%

7.0%

Professional — Nonsales

7.4%

6.7%

7.0%

7.3%

6.6%

7.0%

Para-professional — White collar

7.5%

6.7%

7.0%

7.5%

6.7%

7.0%

Para-professional — Blue collar

7.5%

6.1%

7.0%

7.5%

6.0%

7.0%

© 2016 Mercer LLC.

317

Global Compensation Planning Report — October Update

CHINA–XIAMEN–FUZHOU

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

2%

0%

0%

Executive

5%

9%

3%

Management — Nonsales

2%

1%

0%

Professional — Sales

4%

5%

2%

Professional — Nonsales

2%

1%

0%

Para-professional — White collar

3%

0%

0%

Para-professional — Blue collar

3%

1%

0%

MANDATORY PAY INCREASE SCHEMES China–Xiamen-Fuzhou does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

87%

98%

46%

93%

85%

59%

Median target bonus (% of base pay)

25%

19%

20%

15%

15%

13%

Median maximum bonus (% of base pay)

40%

30%

25%

20%

20%

20%

© 2016 Mercer LLC.

318

Global Compensation Planning Report — October Update

CHINA–XIAMEN–FUZHOU

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engeering

Professional

Sales

Professional

Sales

Professional

Engeering

Professional

Marketing

Management

Manufacturing

Para-professional

SOURCES SOURCE China–Xiamen–Fuzhou All Industries Total Renumeration Survey, July 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

155

July 1, 2016

Not applicable

October 2016

319

Global Compensation Planning Report — October Update

CHINA–XIAN

Data for 2015

Budgeted

Data for 2016

Forecast

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.9%

Inflation, annual average change

2016: 6.6%

2015: 1.4%

2017: 6.2%

Unemployment

2016: 2.1%

2015: 4.1%

2017: 2.3%

2016: 4.1%

2017: 4.1%

Note: GDP, inflation, and unemployment figures are for China.

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.0%

6.2%

6.5%

7.0%

6.0%

6.5%

Executive

7.0%

6.0%

6.5%

7.0%

6.0%

6.5%

Management — Nonsales

7.1%

6.3%

6.5%

7.0%

6.1%

6.5%

Professional — Sales

7.1%

6.3%

7.0%

7.0%

6.1%

7.0%

Professional — Nonsales

7.3%

6.5%

6.5%

7.2%

6.4%

6.5%

Para-professional — White collar

7.0%

6.2%

6.9%

7.0%

6.0%

6.9%

Para-professional — Blue collar

7.3%

6.3%

6.9%

7.1%

6.1%

6.7%

© 2016 Mercer LLC.

320

Global Compensation Planning Report — October Update

CHINA–XIAN

Data for 2015

Budgeted

Data for 2016

Forecast

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

3%

3%

1%

Executive

6%

7%

2%

Management — Nonsales

4%

3%

1%

Professional — Sales

2%

3%

1%

Professional — Nonsales

3%

3%

1%

Para-professional — White collar

2%

2%

1%

Para-professional — Blue collar

3%

3%

1%

MANDATORY PAY INCREASE SCHEMES China–Xian does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

83%

96%

47%

96%

85%

57%

Median target bonus (% of base pay)

25%

19%

21%

15%

15%

15%

Median maximum bonus (% of base pay)

38%

30%

30%

23%

23%

23%

© 2016 Mercer LLC.

321

Global Compensation Planning Report — October Update

CHINA–XIAN

Data for 2015

Budgeted

Data for 2016

Forecast

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Sales

Management

Sales

Professional

Sales

Professional

Sales

Management

Engineering

Professional

Life Science

Professional

SOURCES SOURCE China–Xian All Industries Total Remuneration Survey, July 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

329

July 1, 2016

Not applicable

October 2016

322

Global Compensation Planning Report — October Update

HONG KONG

Data for 2015

Actual

Data for 2016

Actual/Budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 2.4%

Inflation, annual average change

2016: 1.4%

2015: 3.0%

2017: 1.9%

Unemployment

2016: 2.5%

2015: 3.3%

2017: 2.6%

2016: 3.2%

2017: 3.1%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

4.2%

4.0%

4.0%

4.2%

4.0%

4.0%

Executive

4.5%

4.2%

4.0%

4.4%

4.1%

4.0%

Management — Nonsales

4.4%

4.0%

4.0%

4.4%

4.0%

4.0%

Professional — Sales

4.3%

4.0%

4.0%

4.2%

4.0%

4.0%

Professional — Nonsales

4.4%

4.0%

4.0%

4.4%

4.0%

4.0%

Para-professional — White collar

4.5%

4.0%

4.0%

4.5%

4.0%

4.0%

Para-professional — Blue collar

4.2%

4.0%

4.0%

4.0%

3.8%

4.0%

© 2016 Mercer LLC.

323

Global Compensation Planning Report — October Update

HONG KONG

Data for 2015

Actual

Data for 2016

Actual/Budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

3%

4%

4%

Executive

7%

7%

6%

Management — Nonsales

4%

4%

4%

Professional — Sales

5%

6%

5%

Professional — Nonsales

4%

5%

4%

Para-professional — White collar

4%

4%

4%

Para-professional — Blue collar

10%

12%

11%

MANDATORY PAY INCREASE SCHEMES Hong Kong does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

97%

99%

70%

95%

87%

72%

Median target bonus (% of base pay)

25%

15%

13%

12%

10%

10%

Median maximum bonus (% of base pay)

38%

25%

20%

19%

16%

17%

© 2016 Mercer LLC.

324

Global Compensation Planning Report — October Update

HONG KONG

Data for 2015

Actual

Data for 2016

Actual/Budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Supply and Logistics

Para-professional — Experienced

Supply and Logistics

Para-professional — Experienced

Sales

Management — Manager

Sales

Marketing

Management — Manager

Professional — Senior, Management — Manager

SOURCES SOURCE Hong Kong Total Remuneration Survey, July 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

490

July 1, 2016

Not applicable

October 2016

325

Global Compensation Planning Report — October Update

INDIA

Data for 2015

Actual/budgeted

Data for 2016

Forecast

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 7.6%

Inflation, annual average change

2016: 7.6%

2015: 4.9%

2017: 7.6%

Unemployment

2016: 5.5%

2015: 3.5%

2017: 5.2%

2016: 3.4%

2017: 3.4%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

10.0%

10.5%

–

10.0%

10.5%

10.4%

Executive

10.0%

10.9%

–

10.0%

10.6%

11.0%

Management — Nonsales

10.5%

11.0%

–

10.5%

11.0%

11.0%

Professional — Sales

11.0%

11.0%

–

11.0%

11.0%

11.0%

Professional — Nonsales

11.0%

11.0%

–

10.8%

11.0%

11.0%

Para-professional — White collar

10.5%

11.0%

–

10.5%

11.0%

10.0%

Para-professional — Blue collar

11.0%

11.0%

–

10.8%

11.0%

10.0%

IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated missing content will be available to download on November 11.

© 2016 Mercer LLC.

326

Global Compensation Planning Report — October Update

INDIA

Data for 2015

Actual/budgeted

Data for 2016

Forecast

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

1%

1%

2%

Executive

4%

2%

–

Management — Nonsales

2%

2%

–

Professional — Sales

3%

2%

–

Professional — Nonsales

3%

2%

–

Para-professional — White collar

5%

2%

–

Para-professional — Blue collar

6%

3%

–

MANDATORY PAY INCREASE SCHEMES India does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

97%

97%

71%

91%

82%

56%

Median target bonus (% of base pay)

23%

15%

11%

11%

10%

10%

Median maximum bonus (% of base pay)

31%

20%

15%

17%

15%

11%

IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated content will be available to download on November 11. Short-term incentive data currently reflect information reported in 2015.

© 2016 Mercer LLC.

327

Global Compensation Planning Report — October Update

INDIA

Data for 2015

Actual/budgeted

Data for 2016

Forecast

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Sales

Management

Sales

Management, Professional

Research and Development

Professional

Research and Development

Professional

Engineering

Professional

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

India Total Remuneration Survey (Q4), June 2015

691

June 1, 2015

Asia Pulse Survey, July 2016

93

May 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

328

Global Compensation Planning Report — October Update

INDONESIA

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 4.8%

Inflation, annual average change

2016: 4.9%

2015: 6.4%

2017: 5.3%

Unemployment

2016: 3.7%

2015: 6.2%

2017: 4.2%

2016: 5.6%

2017: 5.7%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

9.0%

8.9%

9.1%

9.0%

8.8%

9.0%

Executive

8.4%

9.0%

9.0%

8.0%

8.6%

9.0%

Management — Nonsales

9.0%

9.0%

9.3%

9.0%

9.0%

9.3%

Professional — Sales

9.0%

8.8%

9.5%

9.0%

8.8%

9.5%

Professional — Nonsales

9.0%

9.0%

9.5%

9.0%

9.0%

9.5%

Para-professional — White collar

10.0%

9.6%

10.0%

10.0%

9.5%

10.0%

Para-professional — Blue collar

10.0%

10.0%

10.0%

10.0%

10.0%

10.0%

© 2016 Mercer LLC.

329

Global Compensation Planning Report — October Update

INDONESIA

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

1%

2%

1%

Executive

3%

5%

2%

Management — Nonsales

3%

3%

1%

Professional — Sales

1%

2%

1%

Professional — Nonsales

2%

3%

1%

Para-professional — White collar

1%

3%

1%

Para-professional — Blue collar

2%

2%

1%

MANDATORY PAY INCREASE SCHEMES Indonesia does not have a mandatory pay increase policy, but it has a minimum wage regulation for each province.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

77%

95%

57%

94%

77%

51%

Median target bonus (% of base pay)

22%

17%

15%

14%

13%

12%

Median maximum bonus (% of base pay)

34%

28%

23%

20%

20%

17%

© 2016 Mercer LLC.

330

Global Compensation Planning Report — October Update

INDONESIA

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Sales

Management — Manager

Sales

Management — Manager

Sales

Professional — Experienced

Sales

Professional — Experienced

Marketing

Management — Manager

Engineering

Management — Manager

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Asia Pulse survey, July 2016

127

May 2016

Indonesia Total Remuneration Survey All Industries, June 2016

477

June 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

331

Global Compensation Planning Report — October Update

JAPAN

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 0.5%

Inflation, annual average change

2016: 0.5%

2015: 0.8%

2017: 0.6%

Unemployment

2016: -0.2%

2015: 3.4%

2017: 0.5%

2016: 3.2%

2017: 3.2%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

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 — Nonsales

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%

1.9%

2.0%

© 2016 Mercer LLC.

332

Global Compensation Planning Report — October Update

JAPAN

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

4%

7%

4%

Executive

12%

15%

7%

Management — Nonsales

5%

8%

5%

Professional — Sales

6%

6%

5%

Professional — Nonsales

5%

7%

4%

Para-professional — White collar

8%

9%

7%

Para-professional — Blue collar

14%

17%

15%

MANDATORY PAY INCREASE SCHEMES Japan does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

78%

90%

61%

85%

63%

32%

Median target bonus (% of base pay)

23%

15%

12%

10%

9%

8%

Median maximum bonus (% of base pay)

40%

26%

20%

20%

15%

15%

© 2016 Mercer LLC.

333

Global Compensation Planning Report — October Update

JAPAN

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Marketing

Management — Manager

Sales

Engineering

Professional — Senior and Experienced

Management — Manager, Professional — Experienced

Sales

Management — Manager

Marketing

Management — Manager

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

534

June 1, 2016

Not applicable

October 2016

Japan Total Remuneration Survey, June 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

334

Global Compensation Planning Report — October Update

MALAYSIA

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 5.0%

Inflation, annual average change

2016: 4.3%

2015: 2.1%

2017: 4.6%

Unemployment

2016: 2.1%

2015: 3.2%

2017: 3.0%

2016: 3.2%

2017: 3.2%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

5.1%

5.3%

5.5%

5.0%

5.3%

5.5%

Executive

5.1%

5.5%

5.5%

5.0%

5.5%

5.5%

Management — Nonsales

5.3%

5.5%

5.5%

5.2%

5.5%

5.5%

Professional — Sales

5.3%

5.5%

5.6%

5.3%

5.5%

5.5%

Professional — Nonsales

5.2%

5.5%

5.5%

5.1%

5.5%

5.5%

Para-professional — White collar

5.0%

5.5%

5.5%

5.0%

5.5%

5.5%

Para-professional — Blue collar

5.0%

5.3%

5.5%

5.0%

5.1%

5.5%

© 2016 Mercer LLC.

335

Global Compensation Planning Report — October Update

MALAYSIA

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

3%

4%

3%

Executive

5%

6%

4%

Management — Nonsales

3%

4%

2%

Professional — Sales

5%

6%

4%

Professional — Nonsales

3%

4%

2%

Para-professional — White collar

3%

4%

2%

Para-professional — Blue collar

4%

6%

4%

MANDATORY PAY INCREASE SCHEMES Malaysia does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

74%

90%

47%

89%

74%

44%

Median target bonus (% of base pay)

20%

17%

15%

15%

13%

12%

Median maximum bonus (% of base pay)

32%

25%

22%

20%

18%

18%

© 2016 Mercer LLC.

336

Global Compensation Planning Report — October Update

MALAYSIA

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Sales

Management — Managers, Professional — Experienced

Sales

Management — Managers, Professional — Experienced

Engineering

Professional — Senior and Experienced

Engineering

Professional — Senior and Experienced

Finance

Management — Managers, Professional — Experienced

Finance

Management — Managers, Professional — Experienced

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE, MONTH, AND YEAR

Malaysia All Industries Total Remuneration Survey, June 2016

524

June 1, 2016

Asia Pulse survey, July 2016

180

May 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

337

Global Compensation Planning Report — October Update

MYANMAR

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 7.0%

Inflation, annual average change

2016: 8.1%

2015: 11.4%

2017: 7.7%

Unemployment

2016: 9.8%

2015: 4.0%

2017: 9.1%

2016: 4.0%

2017: 4.0%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

8.3%

9.5%

10.0%

8.0%

9.5%

9.9%

Executive

8.5%

10.0%

10.0%

8.0%

10.0%

10.0%

Management — Nonsales

9.0%

10.0%

10.0%

8.2%

10.0%

10.0%

Professional — Sales

9.0%

9.5%

10.0%

8.3%

9.0%

10.0%

Professional — Nonsales

10.0%

10.0%

10.0%

10.0%

9.5%

10.0%

Para-professional — White collar

9.0%

10.0%

10.0%

8.6%

9.8%

10.0%

Para-professional — Blue collar

10.0%

10.0%

10.0%

10.0%

10.0%

10.0%

© 2016 Mercer LLC.

338

Global Compensation Planning Report — October Update

MYANMAR

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

11%

3%

3%

Executive

8%

8%

4%

Management — Nonsales

8%

7%

5%

Professional — Sales

6%

3%

3%

Professional — Nonsales

8%

4%

5%

Para-professional — White collar

6%

6%

6%

Para-professional — Blue collar

8%

7%

8%

MANDATORY PAY INCREASE SCHEMES Myanmar does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

59%

84%

54%

84%

66%

46%

Median target bonus (% of base pay)

22%

18%

18%

16%

15%

16%

Median maximum bonus (% of base pay)

40%

30%

24%

25%

21%

23%

© 2016 Mercer LLC.

339

Global Compensation Planning Report — October Update

MYANMAR

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Sales and Marketing

Sales and Marketing Manager

Marketing

Marketing Manager

Human Resource

Human Resource Manager

Sales

Sales Reoresentative – Experienced

Top Management

Head of Operation – Tier 3

Administration

Office Administration Professional – Experienced

SOURCES SOURCE Myanmar Total Remuneration Survey, June 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

77

June 1, 2016

Not applicable

October 2016

340

Global Compensation Planning Report — October Update

NEW ZEALAND

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 3.0%

Inflation, annual average change

2016: 2.8%

2015: 0.3%

2017: 2.7%

Unemployment

2016: 0.7%

2015: 5.4%

2017: 1.6%

2016: 5.3%

2017: 5.5%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

2.9%

3.0%

3.0%

2.9%

3.0%

3.0%

Executive

3.0%

3.0%

3.0%

3.0%

3.0%

3.0%

Management — Nonsales

3.0%

3.0%

3.0%

3.0%

3.0%

3.0%

Professional — Sales

2.9%

3.0%

3.0%

2.9%

3.0%

3.0%

Professional — Nonsales

3.0%

3.0%

3.0%

3.0%

3.0%

3.0%

Para-professional — White collar

3.0%

3.0%

3.0%

2.9%

3.0%

3.0%

Para-professional — Blue collar

3.0%

2.9%

3.0%

2.9%

2.8%

3.0%

© 2016 Mercer LLC.

341

Global Compensation Planning Report — October Update

NEW ZEALAND

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

4%

6%

3%

Executive

4%

5%

4%

Management — Nonsales

3%

3%

3%

Professional — Sales

3%

3%

1%

Professional — Nonsales

3%

5%

1%

Para-professional — White collar

2%

6%

2%

Para-professional — Blue collar

7%

7%

6%

MANDATORY PAY INCREASE SCHEMES New Zealand does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

69%

86%

57%

78%

52%

29%

Median target bonus (% of base pay)

24%

15%

10%

10%

8%

5%

Median maximum bonus (% of base pay)

40%

25%

16%

15%

11%

9%

© 2016 Mercer LLC.

342

Global Compensation Planning Report — October Update

NEW ZEALAND

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Sales

Professional – Experienced

Sales

Professional – Experienced

Sales

Manager

Contact Centre

Para-Professional – Expert

Marketing

Professional – Senior

Marketing

Manager

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

233

July 1, 2016

Not applicable

October 2016

New Zealand Total Remuneration Survey, July 2016 International Monetary Fund, World Economic Outlook Database, October 2016 *The 2015 counts are based on TRS Cross industries and related supplements.

© 2016 Mercer LLC.

343

Global Compensation Planning Report — October Update

PAKISTAN

Data for 2015

Actual

Data for 2016

Actual/Budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 4.0%

Inflation, annual average change

2016: 4.7%

2015: 4.5%

2017: 5.0%

Unemployment

2016: 2.9%

2015: 5.9%

2017: 5.2%

2016: 6.0%

2017: 6.0%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

10.0%

10.0%

10.0%

10.0%

10.0%

10.0%

Executive

11.0%

10.0%

10.0%

11.0%

10.0%

10.0%

Management — Nonsales

11.0%

10.5%

10.0%

11.0%

10.5%

10.0%

Professional — Sales

11.0%

10.2%

11.0%

11.0%

10.2%

11.0%

Professional — Nonsales

11.0%

11.0%

11.0%

11.0%

11.0%

11.0%

Para-professional — White collar

11.0%

10.0%

11.0%

11.0%

10.0%

11.0%

Para-professional — Blue collar

10.0%

10.0%

11.0%

10.0%

10.0%

11.0%

© 2016 Mercer LLC.

344

Global Compensation Planning Report — October Update

PAKISTAN

Data for 2015

Actual

Data for 2016

Actual/Budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

0%

0%

0%

Executive

0%

0%

0%

Management — Nonsales

0%

0%

0%

Professional — Sales

0%

0%

0%

Professional — Nonsales

0%

0%

0%

Para-professional — White collar

0%

0%

0%

Para-professional — Blue collar

0%

0%

0%

MANDATORY PAY INCREASE SCHEMES Pakistan does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

90%

91%

57%

91%

55%

32%

Median target bonus (% of base pay)

22%

17%

15%

15%

15%

15%

Median maximum bonus (% of base pay)

30%

25%

22%

23%

15%

20%

© 2016 Mercer LLC.

345

Global Compensation Planning Report — October Update

PAKISTAN

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

Professional

–

–

Sales

Management, Professional

–

–

Supply and Logistics

Professional

–

–

Note: Data are not available.

SOURCES SOURCE Pakistan Total Renumeration Survey All Industries, July 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

143

July 1, 2016

Not applicable

October 2016

346

Global Compensation Planning Report — October Update

PHILIPPINES

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 5.9%

Inflation, annual average change

2016: 6.4%

2015: 1.4%

2017: 6.7%

Unemployment

2016: 2.0%

2015: 6.3%

2017: 3.4%

2016: 5.9%

2017: 5.7%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

6.0%

6.0%

6.5%

6.0%

6.0%

6.4%

Executive

6.0%

6.0%

6.5%

5.8%

6.0%

6.0%

Management — Nonsales

6.0%

6.0%

6.0%

6.0%

6.0%

6.0%

Professional — Sales

6.0%

6.0%

6.5%

6.0%

6.0%

6.2%

Professional — Nonsales

6.0%

6.0%

6.0%

6.0%

6.0%

6.0%

Para-professional — White collar

6.0%

6.0%

6.0%

6.0%

6.0%

6.0%

Para-professional — Blue collar

6.0%

6.0%

6.0%

6.0%

5.5%

6.0%

© 2016 Mercer LLC.

347

Global Compensation Planning Report — October Update

PHILIPPINES

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

0%

1%

0%

Executive

5%

4%

0%

Management — Nonsales

1%

2%

0%

Professional — Sales

3%

3%

0%

Professional — Nonsales

2%

2%

0%

Para-professional — White collar

3%

4%

0%

Para-professional — Blue collar

4%

4%

0%

MANDATORY PAY INCREASE SCHEMES Philippines does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

72%

94%

51%

91%

61%

30%

Median target bonus (% of base pay)

21%

15%

12%

11%

10%

10%

Median maximum bonus (% of base pay)

31%

25%

20%

20%

17%

20%

© 2016 Mercer LLC.

348

Global Compensation Planning Report — October Update

PHILIPPINES

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Sales

Professional — Senior and Experienced

Sales

Professional — Senior and Experienced

Finance

Professional — Senior and Experienced

Finance

Professional — Senior and Experienced

Engineering

Professional — Senior and Experienced

Engineering

Professional — Senior and Experienced

SOURCES SOURCE Philippines Total Remuneration Survey, June 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

374

June 1, 2016

Not applicable

October 2016

349

Global Compensation Planning Report — October Update

SINGAPORE

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 2.0%

Inflation, annual average change

2016: 1.7%

2015: -0.5%

2017: 2.2%

Unemployment

2016: -0.3%

2015: 1.9%

2017: 1.1%

2016: 2.0%

2017: 2.0%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

4.0%

4.0%

4.0%

4.0%

4.0%

4.0%

Executive

4.0%

4.0%

4.0%

4.0%

4.0%

4.0%

Management — Nonsales

4.0%

4.0%

4.0%

4.0%

4.0%

4.0%

Professional — Sales

4.0%

4.0%

4.0%

4.0%

4.0%

4.0%

Professional — Nonsales

4.0%

4.0%

4.0%

4.0%

4.0%

4.0%

Para-professional — White collar

4.0%

4.0%

4.0%

4.0%

4.0%

4.0%

Para-professional — Blue collar

4.0%

4.0%

4.0%

4.0%

3.8%

4.0%

© 2016 Mercer LLC.

350

Global Compensation Planning Report — October Update

SINGAPORE

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

5%

5%

4%

Executive

10%

10%

8%

Management — Nonsales

6%

7%

5%

Professional — Sales

11%

9%

8%

Professional — Nonsales

6%

6%

5%

Para-professional — White collar

6%

7%

6%

Para-professional — Blue collar

8%

10%

8%

MANDATORY PAY INCREASE SCHEMES Singapore does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

85%

95%

44%

92%

79%

41%

Median target bonus (% of base pay)

25%

18%

15%

15%

14%

15%

Median maximum bonus (% of base pay)

36%

27%

22%

22%

20%

20%

© 2016 Mercer LLC.

351

Global Compensation Planning Report — October Update

SINGAPORE

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

Professional – Senior

Engineering

Professional – Experienced

Sales

Management

Manufacturing

Para-Professional – Experienced

Marketing

Management

Sales

Professional – Experienced

SOURCES SOURCE Singapor Total Remuneration Survey June, 2016. International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

775

June 1, 2016

Not applicable

October 2016

352

Global Compensation Planning Report — October Update

SOUTH KOREA

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 2.6%

Inflation, annual average change

2016: 2.7%

2015: 0.7%

2017: 3.0%

Unemployment

2016: 1.0%

2015: 3.6%

2017: 1.9%

2016: 3.6%

2017: 3.3%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

4.5%

4.5%

5.0%

4.5%

4.5%

5.0%

Executive

4.5%

4.1%

4.8%

4.4%

4.0%

4.8%

Management — Nonsales

4.6%

4.4%

5.0%

4.6%

4.3%

5.0%

Professional — Sales

4.8%

4.5%

5.0%

4.7%

4.5%

5.0%

Professional — Nonsales

4.6%

4.5%

5.0%

4.6%

4.5%

5.0%

Para-professional — White collar

4.5%

4.4%

5.0%

4.5%

4.3%

5.0%

Para-professional — Blue collar

4.4%

4.1%

4.5%

4.4%

4.0%

4.5%

© 2016 Mercer LLC.

353

Global Compensation Planning Report — October Update

SOUTH KOREA

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

2%

2%

0%

Executive

2%

2%

0%

Management — Nonsales

2%

2%

0%

Professional — Sales

2%

2%

0%

Professional — Nonsales

1%

2%

0%

Para-professional — White collar

2%

2%

0%

Para-professional — Blue collar

0%

0%

0%

MANDATORY PAY INCREASE SCHEMES There is a system called “Hobong system,” which is an automatic annual increase based on years of service. However, most multinational companies and Korean conglomerates in Korea adopt job-value-based systems or mixed systems (job-value and role-level based). Although some local companies still employ the Hobong system, multinational firms, Korean corporations and larger local firms have adopted job-value-based salary increase policies.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

96.0%

96.0%

62.0%

94.0%

81.0%

79.0%

Median target bonus (% of base pay)

22.5%

15.0%

15.0%

12.0%

10.0%

10.0%

Median maximum bonus (% of base pay)

35.1%

25.0%

21.7%

20.0%

17.0%

17.5%

© 2016 Mercer LLC.

354

Global Compensation Planning Report — October Update

SOUTH KOREA

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

Professional — Senior

Sales

Professional — Experienced

Sales

Professional — Experienced

Engineering

Professional — Senior

Sales

Professional — Senior

Engineering

Professional — Experienced

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

South Korea Total Remuneration Survey All Industries, July 2016

499

July 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

© 2016 Mercer LLC.

355

Global Compensation Planning Report — October Update

SRI LANKA

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 4.8%

Inflation, annual average change

2016: 5.0%

2015: 0.9%

2017: 5.0%

Unemployment

2016: 4.1%

2015: 4.0%

2017: 5.3%

2016: 4.0%

2017: 4.0%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

9.3%

9.0%

10.0%

9.3%

9.0%

10.0%

Executive

8.0%

9.0%

10.0%

8.0%

9.0%

10.0%

Management — Nonsales

9.0%

8.8%

10.0%

9.0%

8.8%

10.0%

Professional — Sales

8.7%

8.5%

10.0%

8.7%

8.5%

10.0%

Professional — Nonsales

9.0%

8.5%

10.0%

9.0%

8.5%

10.0%

Para-professional — White collar

9.0%

9.0%

9.3%

9.0%

9.0%

9.3%

Para-professional — Blue collar

8.5%

8.5%

10.0%

8.5%

8.5%

10.0%

© 2016 Mercer LLC.

356

Global Compensation Planning Report — October Update

SRI LANKA

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

0%

0%

0%

Executive

0%

0%

0%

Management — Nonsales

0%

0%

0%

Professional — Sales

0%

0%

0%

Professional — Nonsales

0%

0%

0%

Para-professional — White collar

0%

0%

0%

Para-professional — Blue collar

0%

0%

0%

MANDATORY PAY INCREASE SCHEMES Sri Lanka does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

80%

83%

58%

80%

63%

38%

Median target bonus (% of base pay)

17%

17%

14%

12%

14%

11%

Median maximum bonus (% of base pay)

25%

21%

17%

16%

17%

15%

© 2016 Mercer LLC.

357

Global Compensation Planning Report — October Update

SRI LANKA

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Finance

Management, Senior management

Finance

Management, Senior management

Sales/Sales and Marketing

Management, Senior management

Sales/Sales and Marketing

Management, Senior management

Engineering

Individual contributors

Manufacturing

Individual contributors

SOURCES SOURCE Sri Lanka Total Remuneration Survey, June 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

66

June 1, 2016

Not applicable

October 2016

358

Global Compensation Planning Report — October Update

TAIWAN

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 0.6%

Inflation, annual average change

2016: 1.0%

2015: -0.3%

2017: 1.7%

Unemployment

2016: 1.1%

2015: 3.8%

2017: 1.1%

2016: 3.9%

2017: 4.0%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

3.6%

3.5%

3.8%

3.5%

3.5%

3.7%

Executive

3.8%

4.0%

4.0%

3.7%

3.9%

4.0%

Management — Nonsales

4.0%

4.0%

4.0%

3.8%

3.9%

4.0%

Professional — Sales

3.8%

4.0%

4.0%

3.7%

3.9%

4.0%

Professional — Nonsales

3.8%

3.8%

4.0%

3.8%

3.7%

4.0%

Para-professional — White collar

3.6%

3.5%

4.0%

3.5%

3.5%

3.9%

Para-professional — Blue collar

3.5%

3.0%

3.5%

3.3%

3.0%

3.5%

© 2016 Mercer LLC.

359

Global Compensation Planning Report — October Update

TAIWAN

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

3%

2%

1%

Executive

10%

6%

4%

Management — Nonsales

6%

5%

3%

Professional — Sales

6%

4%

3%

Professional — Nonsales

4%

3%

2%

Para-professional — White collar

8%

5%

4%

Para-professional — Blue collar

8%

7%

5%

MANDATORY PAY INCREASE SCHEMES Taiwan does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

69%

92%

45%

89%

64%

28%

Median target bonus (% of base pay)

20%

16%

15%

14%

12%

12%

Median maximum bonus (% of base pay)

34%

27%

25%

20%

19%

16%

© 2016 Mercer LLC.

360

Global Compensation Planning Report — October Update

TAIWAN

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Sales

Professional

Sales

Professional

Engineering

Professional

Marketing

Professional

Marketing

Professional

Engineering

Professional

SOURCES SOURCE Taiwan Total Renumeration Survey, July 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

399

July 1, 2016

Not applicable

October 2016

361

Global Compensation Planning Report — October Update

THAILAND

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 2.8%

Inflation, annual average change

2016: 3.2%

2015: -0.9%

2017: 3.3%

Unemployment

2016: 0.3%

2015: 0.9%

2017: 1.6%

2016: 0.8%

2017: 0.7%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

5.3%

5.2%

5.5%

5.3%

5.1%

5.5%

Executive

5.0%

5.1%

5.5%

5.0%

5.0%

5.1%

Management — Nonsales

5.3%

5.2%

5.5%

5.2%

5.1%

5.5%

Professional — Sales

5.3%

5.1%

5.5%

5.3%

5.0%

5.5%

Professional — Nonsales

5.5%

5.3%

5.6%

5.5%

5.2%

5.5%

Para-professional — White collar

5.5%

5.5%

5.6%

5.3%

5.2%

5.5%

Para-professional — Blue collar

5.3%

5.0%

5.5%

5.3%

5.0%

5.5%

© 2016 Mercer LLC.

362

Global Compensation Planning Report — October Update

THAILAND

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

1%

2%

1%

Executive

5%

4%

2%

Management — Nonsales

2%

2%

1%

Professional — Sales

2%

3%

1%

Professional — Nonsales

1%

2%

1%

Para-professional — White collar

3%

4%

3%

Para-professional — Blue collar

1%

2%

1%

MANDATORY PAY INCREASE SCHEMES Thailand does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

80%

94%

48%

91%

73%

47%

Median target bonus (% of base pay)

23%

18%

17%

16%

16%

17%

Median maximum bonus (% of base pay)

35%

30%

28%

25%

25%

26%

© 2016 Mercer LLC.

363

Global Compensation Planning Report — October Update

THAILAND

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Sales

Management — Manager, Professional — Experienced

Sales

Management — Manager, Professional — Experienced and Senior

Finance

Professional — Senior, Management — Manager

Engineering

Professional — Experienced

Engineering

Professional — Experienced

Marketing

Professional — Senior

SOURCES SOURCE Thailand Total Remuneration survey, June 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

511

June 1, 2016

Not applicable

October 2016

364

Global Compensation Planning Report — October Update

VIETNAM

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.7%

Inflation, annual average change

2016: 6.1%

2015: 0.6%

2017: 6.2%

Unemployment

2016: 2.0%

2015: 2.4%

2017: 3.7%

2016: 2.4%

2017: 2.4%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

9.2%

9.0%

10.0%

9.0%

9.0%

10.0%

Executive

9.4%

9.2%

10.0%

9.0%

9.0%

10.0%

Management — Nonsales

9.0%

9.0%

10.0%

9.0%

9.0%

10.0%

Professional — Sales

9.2%

9.0%

10.0%

9.0%

9.0%

10.0%

Professional — Nonsales

9.2%

9.0%

10.0%

9.0%

9.0%

10.0%

Para-professional — White collar

9.0%

9.0%

10.0%

9.0%

9.0%

10.0%

Para-professional — Blue collar

10.0%

10.0%

10.0%

10.0%

9.7%

10.0%

© 2016 Mercer LLC.

365

Global Compensation Planning Report — October Update

VIETNAM

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

2%

2%

1%

Executive

3%

4%

1%

Management — Nonsales

3%

4%

1%

Professional — Sales

2%

2%

1%

Professional — Nonsales

2%

3%

1%

Para-professional — White collar

3%

3%

1%

Para-professional — Blue collar

3%

3%

2%

MANDATORY PAY INCREASE SCHEMES Vietnam has a regional minimum wage structure, whereby companies must pay their lowest-level employees at or above the regional minimum wage. Some regions in Vietnam have not adopted a mandatory pay increase policy, but companies are beholden to any salary increase terms contained in collective bargaining agreements.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

54%

92%

51%

93%

69%

24%

Median target bonus (% of base pay)

21%

16%

15%

15%

15%

15%

Median maximum bonus (% of base pay)

36%

28%

30%

23%

20%

25%

© 2016 Mercer LLC.

366

Global Compensation Planning Report — October Update

VIETNAM

Data for 2015

Actual

Data for 2016

Actual/budgeted

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Sales

Management — Manager, Professional — Experienced

Sales

Management — Manager, Professional — Experienced

Marketing

Management — Manager

Marketing

Management — Manager

SOURCES SOURCE Vietnam Total Remuneration Survey, June 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

554

June 1, 2016

Not applicable

October 2016

367

Global Compensation Planning Report — October Update

CENTRAL AND EASTERN EUROPE

ALBANIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 2.8%

Inflation, annual average change

2016: 3.4%

2015: 1.9%

2017: 3.7%

Unemployment

2016: 1.1%

2015: 17.1%

2017: 2.2%

2016: 16.9%

2017: 16.6%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

3.0%

2.8%

2.8%

2.7%

2.8%

2.8%

Executive

3.0%

2.9%

2.8%

2.9%

2.8%

2.8%

Management — Nonsales

3.0%

2.8%

2.8%

2.9%

2.8%

2.8%

Professional — Sales

3.0%

2.8%

2.8%

2.7%

2.8%

2.8%

Professional — Nonsales

3.0%

2.8%

2.8%

2.8%

2.8%

2.8%

Para-professional — White collar

3.1%

2.8%

2.8%

2.7%

2.8%

2.8%

Para-professional — Blue collar

3.0%

2.8%

2.8%

2.7%

2.8%

2.8%

© 2016 Mercer LLC.

369

Global Compensation Planning Report — October Update

ALBANIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

36%

8%

13%

Executive

38%

9%

13%

Management — Nonsales

30%

8%

13%

Professional — Sales

36%

8%

13%

Professional — Nonsales

30%

8%

13%

Para-professional — White collar

33%

8%

13%

Para-professional — Blue collar

33%

8%

13%

MANDATORY PAY INCREASE SCHEMES Albania does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

-

-

-

-

-

-

Median target bonus (% of base pay)

-

-

-

-

-

-

Median maximum bonus (% of base pay)

-

-

-

-

-

-

Note: Data are not available.

© 2016 Mercer LLC.

370

Global Compensation Planning Report — October Update

ALBANIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

-

-

-

-

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

11

August 2015

Salary Movement Snapshot, September 2016

12

August 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

ARMENIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 3.0%

Inflation, annual average change

2016: 3.2%

2015: 3.7%

2017: 3.4%

Unemployment

2016: -0.5%

2015: 17.7%

2017: 2.5%

2016: 17.9%

2017: 18.0%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

5.6%

5.9%

5.5%

5.5%

5.5%

5.0%

Executive

6.0%

5.7%

5.0%

5.8%

5.3%

5.0%

Management — Nonsales

5.6%

6.0%

5.5%

5.5%

5.4%

5.0%

Professional — Sales

5.5%

5.4%

5.5%

5.4%

5.2%

5.0%

Professional — Nonsales

5.6%

5.5%

5.0%

5.5%

5.3%

5.0%

Para-professional — White collar

5.6%

5.4%

5.0%

5.5%

5.2%

5.0%

Para-professional — Blue collar

5.8%

5.6%

5.0%

5.6%

5.2%

5.0%

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

ARMENIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

13%

12%

7%

Executive

14%

13%

7%

Management — Nonsales

15%

12%

7%

Professional — Sales

13%

12%

7%

Professional — Nonsales

13%

13%

7%

Para-professional — White collar

15%

13%

8%

Para-professional — Blue collar

17%

8%

0%

MANDATORY PAY INCREASE SCHEMES Armenia does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

100%

57%

92%

86%

100%

Median target bonus (% of base pay)

20%

15%

–

10%

9%

9%

–

19%

–

25%

–

–

Median maximum bonus (% of base pay)

IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated content will be available to download on November 30. Short-term incentive data currently reflect information reported in 2015.

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

ARMENIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Marketing

All levels

-

-

Sales

Professional

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Armenia Total Remuneration Survey, July 2015

16

July 1, 2015

Salary Movement Snapshot, September 2015

15

August 1, 2016

Salary Movement Snapshot, September 2016

17

August 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

374

Global Compensation Planning Report — October Update

AZERBAIJAN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 1.1%

Inflation, annual average change

2016: -2.4%

2015: 4.0%

2017: 1.4%

Unemployment

2016: 10.2%

2015: 6.0%

2017: 8.5%

2016: 6.0%

2017: 6.0%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.6%

8.0%

8.0%

6.2%

8.0%

8.0%

Executive

7.6%

8.0%

8.0%

6.2%

7.7%

8.0%

Management — Nonsales

7.7%

8.0%

8.0%

6.3%

8.0%

8.0%

Professional — Sales

7.7%

8.0%

8.0%

6.3%

7.9%

7.6%

Professional — Nonsales

7.8%

7.7%

8.0%

6.3%

7.2%

7.6%

Para-professional — White collar

7.8%

8.0%

8.0%

6.9%

7.5%

7.9%

Para-professional — Blue collar

7.8%

8.0%

8.0%

7.4%

7.7%

8.0%

© 2016 Mercer LLC.

375

Global Compensation Planning Report — October Update

AZERBAIJAN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

14%

10%

14%

Executive

17%

11%

15%

Management — Nonsales

15%

11%

15%

Professional — Sales

15%

10%

15%

Professional — Nonsales

19%

11%

15%

Para-professional — White collar

17%

11%

15%

Para-professional — Blue collar

17%

10%

12%

MANDATORY PAY INCREASE SCHEMES Azerbaijan does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

88%

96%

64%

83%

67%

75%

Median target bonus (% of base pay)

23%

16%

15%

10%

10%

13%

Median maximum bonus (% of base pay)

34%

30%

33%

18%

20%

–

© 2016 Mercer LLC.

376

Global Compensation Planning Report — October Update

AZERBAIJAN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Marketing

All levels

Sales

Management, Professionals

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

28

August 1, 2015

Salary Movement Snapshot, September 2016

29

August 1, 2016

Azerbaijan Total Remuneration Survey, May 2016

32

May 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

377

Global Compensation Planning Report — October Update

BELARUS

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: -3.9%

Inflation, annual average change

2016: -3.0%

2015: 13.5%

2017: -0.5%

Unemployment

2016: 12.7%

2015: 1.5%

2017: 12.0%

2016: 1.5%

2017: 1.5%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

10.4%

10.5%

11.0%

10.0%

10.2%

10.0%

Executive

11.3%

11.6%

11.3%

11.0%

10.5%

10.3%

Management — Nonsales

10.9%

11.0%

10.7%

10.7%

10.4%

10.0%

Professional — Sales

10.9%

10.5%

10.7%

10.5%

10.4%

10.0%

Professional — Nonsales

11.0%

11.6%

11.5%

10.4%

10.5%

10.3%

Para-professional — White collar

11.0%

11.7%

11.6%

10.8%

11.0%

11.0%

Para-professional — Blue collar

11.0%

11.6%

11.6%

10.8%

10.5%

10.9%

© 2016 Mercer LLC.

378

Global Compensation Planning Report — October Update

BELARUS

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

9%

13%

11%

Executive

8%

11%

9%

Management — Nonsales

7%

11%

11%

Professional — Sales

10%

13%

11%

Professional — Nonsales

13%

13%

11%

Para-professional — White collar

8%

11%

9%

Para-professional — Blue collar

5%

10%

7%

MANDATORY PAY INCREASE SCHEMES Belarus does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

100%

66%

86%

85%

73%

Median target bonus (% of base pay)

18%

15%

19%

10%

15%

40%

Median maximum bonus (% of base pay)

30%

30%

32%

20%

20%

68%

© 2016 Mercer LLC.

379

Global Compensation Planning Report — October Update

BELARUS

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Sales and Marketing

Professional

Sales

Professional

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

32

August 1, 2015

Salary Movement Snapshot, September 2016

43

August 1, 2016

Belarus Total Remuneration Survey, April 2016.

50

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

380

Global Compensation Planning Report — October Update

BOSNIA AND HERZEGOVINA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 3.2%

Inflation, annual average change

2016: 3.0%

2015: -1.0%

2017: 3.2%

Unemployment

2016: -0.7%

2015: 27.7%

2017: 0.5%

2016: 25.4%

2017: 25.2%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

3.0%

2.0%

2.5%

3.0%

2.0%

2.4%

Executive

3.0%

2.2%

2.4%

3.0%

2.1%

2.4%

Management — Nonsales

3.0%

2.0%

2.5%

3.0%

2.0%

2.4%

Professional — Sales

3.0%

2.0%

2.5%

3.0%

2.0%

2.4%

Professional — Nonsales

3.0%

2.0%

2.5%

3.0%

2.0%

2.4%

Para-professional — White collar

3.0%

2.0%

2.5%

3.0%

2.0%

2.4%

Para-professional — Blue collar

3.0%

2.0%

2.4%

3.0%

2.0%

2.4%

© 2016 Mercer LLC.

381

Global Compensation Planning Report — October Update

BOSNIA AND HERZEGOVINA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

0%

4%

5%

Executive

0%

5%

5%

Management — Nonsales

0%

4%

5%

Professional — Sales

0%

4%

5%

Professional — Nonsales

0%

4%

5%

Para-professional — White collar

0%

4%

5%

Para-professional — Blue collar

0%

5%

5%

MANDATORY PAY INCREASE SCHEMES Bosnia and Herzegovina does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

100%

60%

79%

44%

42%

Median target bonus (% of base pay)

16%

16%

18%

10%

7%

10%

Median maximum bonus (% of base pay)

28%

23%

25%

16%

16%

16%

IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated content will be available to download on November 30. Short-term incentive data currently reflect information reported in 2015.

© 2016 Mercer LLC.

382

Global Compensation Planning Report — October Update

BOSNIA AND HERZEGOVINA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Sales

Professional

Sales

Professional

Sales and Marketing

Professional

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Bosnia and Herzegovina Total Remuneration Survey, June 2015

39

June 1, 2015

Salary Movement Snapshot, September 2015

23

August 1, 2015

Salary Movement Snapshot, September 2016

25

August 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

383

Global Compensation Planning Report — October Update

BULGARIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 3.0%

Inflation, annual average change

2016: 3.0%

2015: -1.1%

2017: 2.8%

Unemployment

2016: -1.6%

2015: 9.2%

2017: 0.6%

2016: 8.2%

2017: 7.1%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

4.0%

3.8%

4.0%

4.0%

3.8%

4.0%

Executive

4.0%

3.8%

3.9%

4.0%

3.5%

–

Management — Nonsales

4.0%

3.9%

4.0%

4.0%

3.6%

4.0%

Professional — Sales

4.0%

3.7%

4.0%

4.0%

3.5%

4.0%

Professional — Nonsales

4.0%

3.9%

3.9%

4.0%

3.7%

–

Para-professional — White collar

4.0%

3.8%

4.0%

4.0%

3.7%

4.0%

Para-professional — Blue collar

4.0%

3.9%

3.9%

4.0%

3.9%

–

© 2016 Mercer LLC.

384

Global Compensation Planning Report — October Update

BULGARIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

2%

7%

4%

Executive

4%

11%

7%

Management — Nonsales

2%

11%

5%

Professional — Sales

2%

10%

5%

Professional — Nonsales

2%

8%

6%

Para-professional — White collar

2%

9%

4%

Para-professional — Blue collar

2%

10%

6%

MANDATORY PAY INCREASE SCHEMES There is a mandatory salary increase of 0.6% for each year of service. Some companies have collective bargaining, which mandates an even higher figure.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

99%

98%

87%

96%

86%

90%

Median target bonus (% of base pay)

20%

17%

20%

11%

10%

10%

Median maximum bonus (% of base pay)

30%

25%

25%

20%

17%

15%

© 2016 Mercer LLC.

385

Global Compensation Planning Report — October Update

BULGARIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Manufacturing

All levels

Industry Specific

All levels

Quality

Professional

Manufacturing

All levels

Sales

All levels

Quality

Professional

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

61

August 2015

Salary Movement Snapshot, September 2016

64

August 2016

Bulgaria Total Remuneration Survey, May 2016

226

May 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

386

Global Compensation Planning Report — October Update

CROATIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 1.6%

Inflation, annual average change

2016: 1.9%

2015: -0.5%

2017: 2.1%

Unemployment

2016: -1.0%

2015: 16.9%

2017: 0.8%

2016: 16.4%

2017: 15.9%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

2.8%

2.7%

2.7%

2.7%

2.7%

2.7%

Executive

2.9%

2.7%

2.7%

2.8%

2.6%

2.7%

Management — Nonsales

2.8%

2.8%

2.7%

2.8%

2.6%

2.7%

Professional — Sales

2.9%

2.7%

2.7%

2.8%

2.6%

2.7%

Professional — Nonsales

2.8%

2.7%

2.7%

2.7%

2.6%

2.7%

Para-professional — White collar

2.8%

2.7%

2.7%

2.7%

2.6%

2.7%

Para-professional — Blue collar

2.9%

2.6%

2.7%

2.7%

2.5%

2.6%

© 2016 Mercer LLC.

387

Global Compensation Planning Report — October Update

CROATIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

5%

4%

4%

Executive

6%

5%

6%

Management — Nonsales

7%

5%

6%

Professional — Sales

5%

4%

4%

Professional — Nonsales

5%

5%

6%

Para-professional — White collar

8%

5%

6%

Para-professional — Blue collar

7%

6%

7%

MANDATORY PAY INCREASE SCHEMES Croatia does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

95%

100%

72%

84%

64%

58%

Median target bonus (% of base pay)

25%

16%

17%

10%

8%

9%

Median maximum bonus (% of base pay)

48%

26%

30%

15%

14%

18%

© 2016 Mercer LLC.

388

Global Compensation Planning Report — October Update

CROATIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

IT Analysis and Design

Professional

IT Analysis and Design

Professional

Marketing

All levels

Sales

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

58

August 1, 2015

Salary Movement Snapshot, September 2016

59

August 1, 2016

Croatia Total Remuneration Survey, April 2016

77

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

389

Global Compensation Planning Report — October Update

CZECH REPUBLIC

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 4.5%

Inflation, annual average change

2016: 2.5%

2015: 0.3%

2017: 2.7%

Unemployment

2016: 0.6%

2015: 5.0%

2017: 1.9%

2016: 4.1%

2017: 4.1%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

2.8%

2.7%

2.8%

2.8%

2.7%

2.8%

Executive

2.7%

2.6%

2.8%

2.6%

2.5%

2.8%

Management — Nonsales

2.8%

2.7%

2.8%

2.7%

2.6%

2.8%

Professional — Sales

2.8%

2.7%

2.8%

2.8%

2.6%

2.8%

Professional — Nonsales

2.8%

2.6%

2.8%

2.7%

2.6%

2.8%

Para-professional — White collar

2.8%

2.7%

2.8%

2.8%

2.5%

2.8%

Para-professional — Blue collar

2.7%

2.6%

2.8%

2.5%

2.5%

2.8%

© 2016 Mercer LLC.

390

Global Compensation Planning Report — October Update

CZECH REPUBLIC

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

3%

3%

2%

Executive

4%

5%

4%

Management — Nonsales

3%

4%

3%

Professional — Sales

4%

3%

2%

Professional — Nonsales

3%

3%

2%

Para-professional — White collar

3%

5%

3%

Para-professional — Blue collar

3%

6%

4%

MANDATORY PAY INCREASE SCHEMES The Czech Republic does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

96%

97%

81%

91%

86%

85%

Median target bonus (% of base pay)

20%

15%

20%

11%

10%

15%

Median maximum bonus (% of base pay)

33%

24%

30%

17%

15%

17%

© 2016 Mercer LLC.

391

Global Compensation Planning Report — October Update

CZECH REPUBLIC

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Manufacturing

All levels

Manufacturing

All levels

Marketing

Professional

Sales

Professional

Sales

Professional

Supply and Logistics

Para-professional

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

120

August 2015

Salary Movement Snapshot, September 2016

117

August 2016

Czech Republic Total Remuneration Survey, April 2016

220

April 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

© 2016 Mercer LLC.

392

Global Compensation Planning Report — October Update

ESTONIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 1.1%

Inflation, annual average change

2016: 1.5%

2015: 0.1%

2017: 2.5%

Unemployment

2016: 0.5%

2015: 6.1%

2017: 1.4%

2016: 5.6%

2017: 5.5%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

3.0%

3.0%

3.0%

3.0%

3.0%

3.0%

Executive

3.0%

3.0%

3.0%

3.0%

3.0%

3.0%

Management — Nonsales

3.0%

3.0%

3.0%

3.0%

3.0%

3.0%

Professional — Sales

3.0%

3.0%

3.0%

3.0%

3.0%

3.0%

Professional — Nonsales

3.0%

3.0%

3.0%

3.0%

3.0%

3.0%

Para-professional — White collar

3.0%

3.0%

3.0%

3.0%

3.0%

3.0%

Para-professional — Blue collar

3.0%

3.0%

3.0%

3.0%

2.9%

3.0%

© 2016 Mercer LLC.

393

Global Compensation Planning Report — October Update

ESTONIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

3%

3%

0%

Executive

3%

6%

3%

Management — Nonsales

3%

3%

3%

Professional — Sales

3%

3%

0%

Professional — Nonsales

3%

6%

0%

Para-professional — White collar

3%

3%

3%

Para-professional — Blue collar

3%

6%

0%

MANDATORY PAY INCREASE SCHEMES Estonia does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

95%

97%

81%

90%

80%

83%

Median target bonus (% of base pay)

17%

15%

14%

10%

10%

16%

Median maximum bonus (% of base pay)

31%

30%

25%

20%

18%

21%

© 2016 Mercer LLC.

394

Global Compensation Planning Report — October Update

ESTONIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

IT Analysis and Design

Professional

Industry Specific

Professional

Manufacturing

Para-professional

Manufacturing

Para-professional

Sales

All levels

Sales

All levels

Sales and Marketing

All levels

Sales and Marketing

All levels

Supply and Logistics

All levels

Supply and Logistics

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

35

August 1, 2015

Salary Movement Snapshot, September 2016

36

August 1, 2016

Estonia Total Remuneration Survey, May 2016

56

May 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

395

Global Compensation Planning Report — October Update

GEORGIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 2.8%

Inflation, annual average change

2016: 3.4%

2015: 4.0%

2017: 5.2%

Unemployment

2016: 2.6%

2015: 12.3%

2017: 3.6%

2016: 11.8%

2017: 11.7%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

6.5%

6.5%

6.4%

6.5%

6.5%

6.3%

Executive

6.3%

6.5%

6.3%

6.0%

6.5%

6.3%

Management — Nonsales

6.1%

6.5%

6.4%

6.1%

6.5%

6.4%

Professional — Sales

6.4%

6.5%

6.4%

6.4%

6.5%

6.3%

Professional — Nonsales

6.3%

6.5%

6.4%

6.3%

6.5%

6.3%

Para-professional — White collar

6.5%

6.5%

6.4%

6.5%

6.5%

6.3%

Para-professional — Blue collar

6.6%

6.5%

6.3%

6.6%

6.5%

6.3%

© 2016 Mercer LLC.

396

Global Compensation Planning Report — October Update

GEORGIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

0%

3%

4%

Executive

6%

4%

4%

Management — Nonsales

0%

3%

4%

Professional — Sales

0%

3%

4%

Professional — Nonsales

0%

3%

4%

Para-professional — White collar

0%

4%

4%

Para-professional — Blue collar

0%

0%

0%

MANDATORY PAY INCREASE SCHEMES Georgia does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

94%

33%

76%

80%

60%

Median target bonus (% of base pay)

20%

14%

17%

10%

8%

–

Median maximum bonus (% of base pay)

33%

18%

–

18%

20%

–

IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated content will be available to download on November 30. Short-term incentive data currently reflect information reported in 2015.

© 2016 Mercer LLC.

397

Global Compensation Planning Report — October Update

GEORGIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Finance

Professional

Finance

Professional

Manufacturing

Management

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Georgia Total Remuneration Survey, July 2015

23

July 1, 2015

Salary Movement Snapshot, September 2015

19

August 1, 2015

Salary Movement Snapshot, September 2016

31

August 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

398

Global Compensation Planning Report — October Update

HUNGARY

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 2.9%

Inflation, annual average change

2016: 2.0%

2015: -0.1%

2017: 2.5%

Unemployment 2015: 6.8%

2016: 0.4%

2016: 6.0%

2017: 5.8%

2017: 1.9%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

3.5%

3.3%

3.4%

3.5%

3.3%

3.4%

Executive

3.5%

3.3%

3.4%

3.5%

3.3%

3.3%

Management — Nonsales

3.5%

3.3%

3.3%

3.5%

3.3%

3.3%

Professional — Sales

3.5%

3.3%

3.3%

3.5%

3.3%

3.3%

Professional — Nonsales

3.5%

3.3%

3.3%

3.5%

3.3%

3.3%

Para-professional — White collar

3.5%

3.3%

3.3%

3.5%

3.3%

3.3%

Para-professional — Blue collar

3.5%

3.3%

3.3%

3.5%

3.3%

3.3%

© 2016 Mercer LLC.

399

Global Compensation Planning Report — October Update

HUNGARY

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

4%

0%

0%

Executive

7%

2%

1%

Management — Nonsales

5%

0%

0%

Professional — Sales

5%

0%

0%

Professional — Nonsales

5%

0%

0%

Para-professional — White collar

6%

1%

1%

Para-professional — Blue collar

6%

1%

1%

MANDATORY PAY INCREASE SCHEMES Hungary does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

97%

78%

91%

79%

69%

Median target bonus (% of base pay)

20%

15%

15%

10%

8%

10%

Median maximum bonus (% of base pay)

32%

20%

25%

15%

12%

13%

© 2016 Mercer LLC.

400

Global Compensation Planning Report — October Update

HUNGARY

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Finance

All levels

Manufacturing

All levels

Sales

All levels

Sales

All levels

Supply and Logistics

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

107

August 1, 2015

Salary Movement Snapshot, September 2016

108

August 1, 2016

Hungary Total Remuneration Survey, April 2016

161

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

401

Global Compensation Planning Report — October Update

KAZAKHSTAN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 1.2%

Inflation, annual average change

2016: -0.8%

2015: 6.5%

2017: 1.1%

Unemployment

2016: 13.1%

2015: 5.0%

2017: 9.3%

2016: 5.0%

2017: 5.0%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

8.2%

8.7%

9.0%

8.0%

8.5%

9.0%

Executive

8.0%

9.0%

9.5%

8.0%

9.0%

8.4%

Management — Nonsales

8.2%

8.9%

10.0%

8.0%

8.6%

9.0%

Professional — Sales

8.2%

9.0%

9.0%

8.0%

8.7%

9.0%

Professional — Nonsales

8.2%

9.0%

9.5%

8.0%

8.6%

9.0%

Para-professional — White collar

8.1%

9.0%

9.8%

8.0%

8.7%

9.0%

Para-professional — Blue collar

8.2%

9.0%

9.0%

8.0%

8.7%

8.0%

© 2016 Mercer LLC.

402

Global Compensation Planning Report — October Update

KAZAKHSTAN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

13%

4%

7%

Executive

14%

7%

24%

Management — Nonsales

12%

4%

15%

Professional — Sales

13%

4%

14%

Professional — Nonsales

13%

6%

16%

Para-professional — White collar

16%

6%

19%

Para-professional — Blue collar

16%

13%

26%

MANDATORY PAY INCREASE SCHEMES Kazakhstan does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

97%

97%

72%

83%

77%

72%

Median target bonus (% of base pay)

20%

15%

20%

10%

10%

10%

Median maximum bonus (% of base pay)

35%

20%

25%

20%

19%

21%

© 2016 Mercer LLC.

403

Global Compensation Planning Report — October Update

KAZAKHSTAN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Sales

All levels

Finance

All levels

Sales and Marketing

Professional

Sales

All levels

Sales and Marketing

Management

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

71

August 1, 2015

Salary Movement Snapshot, September 2016

72

August 1, 2016

Kazakhstan Total Remuneration Survey, April 2016

98

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

404

Global Compensation Planning Report — October Update

LATVIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 2.7%

Inflation, annual average change

2016: 2.5%

2015: 0.2%

2017: 3.4%

Unemployment

2016: 0.2%

2015: 9.9%

2017: 1.7%

2016: 9.4%

2017: 9.2%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

2.9%

3.0%

3.0%

2.9%

3.0%

3.0%

Executive

2.9%

3.0%

3.0%

2.9%

2.9%

3.0%

Management — Nonsales

2.9%

3.0%

3.0%

2.9%

2.9%

3.0%

Professional — Sales

2.8%

3.0%

3.0%

2.8%

2.9%

3.0%

Professional — Nonsales

2.9%

3.0%

3.0%

2.8%

2.9%

3.0%

Para-professional — White collar

2.8%

3.0%

3.0%

2.8%

3.0%

3.0%

Para-professional — Blue collar

2.8%

2.9%

3.0%

2.8%

2.9%

3.0%

© 2016 Mercer LLC.

405

Global Compensation Planning Report — October Update

LATVIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

2%

0%

0%

Executive

3%

5%

6%

Management — Nonsales

3%

7%

5%

Professional — Sales

3%

3%

3%

Professional — Nonsales

3%

8%

6%

Para-professional — White collar

3%

5%

6%

Para-professional — Blue collar

3%

3%

3%

MANDATORY PAY INCREASE SCHEMES Latvia still does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

93%

97%

78%

91%

85%

87%

Median target bonus (% of base pay)

20%

15%

17%

12%

10%

14%

Median maximum bonus (% of base pay)

25%

20%

24%

20%

16%

23%

© 2016 Mercer LLC.

406

Global Compensation Planning Report — October Update

LATVIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Industry Specific

All levels

Industry Specific

All levels

Information Technology

All levels

Information Technology

All levels

Sales

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

41

August 1, 2015

Salary Movement Snapshot, September 2016

41

August 1, 2016

Latvia Total Remuneration Survey, May 2016

182

May 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

407

Global Compensation Planning Report — October Update

LITHUANIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 1.6%

Inflation, annual average change

2016: 2.6%

2015: -0.7%

2017: 3.0%

Unemployment

2016: 0.5%

2015: 9.1%

2017: 1.2%

2016: 7.8%

2017: 7.6%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

3.0%

3.0%

3.0%

3.0%

3.0%

3.0%

Executive

3.0%

3.0%

3.0%

3.0%

2.9%

3.0%

Management — Nonsales

3.0%

3.0%

3.0%

3.0%

2.9%

3.0%

Professional — Sales

3.0%

3.0%

3.0%

3.0%

2.9%

3.0%

Professional — Nonsales

3.0%

3.0%

3.0%

3.0%

2.9%

3.0%

Para-professional — White collar

3.0%

2.9%

3.0%

3.0%

2.9%

3.0%

Para-professional — Blue collar

3.0%

2.9%

3.0%

3.0%

2.9%

3.0%

© 2016 Mercer LLC.

408

Global Compensation Planning Report — October Update

LITHUANIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

0%

0%

0%

Executive

2%

5%

5%

Management — Nonsales

2%

5%

3%

Professional — Sales

2%

2%

3%

Professional — Nonsales

2%

2%

3%

Para-professional — White collar

4%

5%

5%

Para-professional — Blue collar

0%

0%

0%

MANDATORY PAY INCREASE SCHEMES Lithuania does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

94%

99%

78%

93%

78%

77%

Median target bonus (% of base pay)

20%

15%

15%

10%

10%

10%

Median maximum bonus (% of base pay)

30%

25%

28%

20%

18%

15%

© 2016 Mercer LLC.

409

Global Compensation Planning Report — October Update

LITHUANIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Industry Specific

Professional, Para-professional

Industry Specific

Professional

Sales

All levels

Manufacturing

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

47

August 1, 2015

Salary Movement Snapshot, September 2016

42

August 1, 2016

Lithuania Total Remuneration Survey, May 2016

102

May 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

410

Global Compensation Planning Report — October Update

MACEDONIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 3.7%

Inflation, annual average change

2016: 2.2%

2015: -0.2%

2017: 3.5%

Unemployment

2016: 0.1%

2015: 26.1%

2017: 0.8%

2016: 25.4%

2017: 24.8%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

3.0%

2.4%

2.7%

2.8%

2.2%

2.6%

Executive

3.3%

2.2%

2.7%

2.7%

2.1%

2.6%

Management — Nonsales

3.0%

2.4%

2.7%

2.8%

2.2%

2.6%

Professional — Sales

3.0%

2.4%

2.7%

2.8%

2.2%

2.6%

Professional — Nonsales

3.0%

2.4%

2.7%

2.8%

2.2%

2.6%

Para-professional — White collar

2.9%

2.4%

2.7%

2.8%

2.2%

2.6%

Para-professional — Blue collar

2.8%

2.4%

2.7%

2.4%

2.2%

2.6%

© 2016 Mercer LLC.

411

Global Compensation Planning Report — October Update

MACEDONIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

15%

11%

13%

Executive

18%

13%

13%

Management — Nonsales

15%

11%

13%

Professional — Sales

15%

11%

13%

Professional — Nonsales

15%

11%

13%

Para-professional — White collar

17%

11%

13%

Para-professional — Blue collar

17%

11%

13%

MANDATORY PAY INCREASE SCHEMES Macedonia does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

100%

79%

75%

75%

63%

Median target bonus (% of base pay)

18%

15%

14%

11%

8%

–

Median maximum bonus (% of base pay)

29%

20%

15%

12%

12%

–

© 2016 Mercer LLC.

412

Global Compensation Planning Report — October Update

MACEDONIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Industry Specific

All levels

Manufacturing

All levels

Sales

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

13

August 1, 2015

Salary Movement Snapshot, September 2016

10

August 1, 2016

Macedonia Total Remuneration Survey, June 2016

25

June 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

413

Global Compensation Planning Report — October Update

MOLDOVA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: -0.5%

Inflation, annual average change

2016: 0.2%

2015: 9.6%

2017: 3.0%

Unemployment

2016: 6.8%

2015: 4.9%

2017: 4.4%

2016: 4.7%

2017: 4.5%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

6.0%

6.3%

7.0%

6.0%

6.1%

7.0%

Executive

6.0%

6.3%

7.0%

6.0%

6.1%

7.0%

Management — Nonsales

6.0%

6.3%

7.0%

6.0%

6.1%

7.0%

Professional — Sales

6.0%

6.3%

7.0%

6.0%

6.1%

7.0%

Professional — Nonsales

6.0%

6.3%

7.0%

6.0%

6.1%

7.0%

Para-professional — White collar

6.0%

6.3%

7.0%

6.0%

6.1%

7.0%

Para-professional — Blue collar

6.0%

6.3%

7.0%

6.0%

6.2%

7.0%

© 2016 Mercer LLC.

414

Global Compensation Planning Report — October Update

MOLDOVA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

0%

18%

10%

Executive

10%

18%

10%

Management — Nonsales

0%

18%

10%

Professional — Sales

0%

18%

10%

Professional — Nonsales

0%

18%

10%

Para-professional — White collar

0%

18%

10%

Para-professional — Blue collar

0%

10%

0%

MANDATORY PAY INCREASE SCHEMES Moldova does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

93%

67%

92%

100%

100%

Median target bonus (% of base pay)

–

18%

–

10%

10%

–

Median maximum bonus (% of base pay)

–

35%

28%

20%

–

–

© 2016 Mercer LLC.

415

Global Compensation Planning Report — October Update

MOLDOVA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

-

-

-

-

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

14

August 1, 2015

Salary Movement Snapshot, September 2016

11

August 1, 2016

Moldova Total Remuneration Survey, April 2016

15

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

416

Global Compensation Planning Report — October Update

MONTENEGRO

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 3.3%

Inflation, annual average change

2016: 5.1%

2015: 1.6%

2017: 3.6%

Unemployment

2016: 0.5%

2015: 18.2%

2017: 1.3%

2016: 17.7%

2017: 17.5%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

2.7%

3.0%

2.8%

2.3%

3.0%

2.4%

Executive

3.0%

3.7%

2.8%

2.7%

3.7%

2.4%

Management — Nonsales

3.0%

3.0%

2.8%

3.0%

3.0%

2.4%

Professional — Sales

3.0%

3.0%

2.8%

2.3%

3.0%

2.4%

Professional — Nonsales

3.0%

3.0%

2.8%

2.7%

3.0%

2.4%

Para-professional — White collar

2.7%

3.4%

2.8%

2.2%

3.0%

2.4%

Para-professional — Blue collar

2.2%

3.4%

2.8%

1.7%

3.0%

2.4%

© 2016 Mercer LLC.

417

Global Compensation Planning Report — October Update

MONTENEGRO

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

11%

0%

38%

Executive

13%

0%

38%

Management — Nonsales

11%

0%

38%

Professional — Sales

22%

0%

38%

Professional — Nonsales

25%

0%

38%

Para-professional — White collar

25%

11%

38%

Para-professional — Blue collar

25%

11%

38%

MANDATORY PAY INCREASE SCHEMES Montenegro does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

100%

43%

78%

71%

71%

Median target bonus (% of base pay)

28%

18%

–

15%

10%

10%

Median maximum bonus (% of base pay)

38%

18%

–

18%

13%

13%

IMPORTANT: Availability of data for some markets was limited at the time of release; this market contains data collected in 2015.

© 2016 Mercer LLC.

418

Global Compensation Planning Report — October Update

MONTENEGRO

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Finance

Professional

-

-

Sales

All levels

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Montenegro Total Remuneration Survey, May 2015

11

May 1, 2015

Salary Movement Snapshot, September 2015

9

August 1, 2015

Salary Movement Snapshot, June 2016

9

May 1, 2016

Salary Movement Snapshot, September 2016

7

August 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

419

Global Compensation Planning Report — October Update

POLAND

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 3.7%

Inflation, annual average change

2016: 3.1%

2015: -0.9%

2017: 3.4%

Unemployment

2016: -0.6%

2015: 7.5%

2017: 1.1%

2016: 6.3%

2017: 6.2%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

3.4%

3.0%

3.1%

3.3%

3.0%

3.0%

Executive

3.3%

3.0%

3.0%

3.2%

3.0%

3.0%

Management — Nonsales

3.4%

3.0%

3.0%

3.3%

3.0%

3.0%

Professional — Sales

3.3%

3.0%

3.0%

3.2%

3.0%

3.0%

Professional — Nonsales

3.3%

3.0%

3.0%

3.2%

3.0%

3.0%

Para-professional — White collar

3.3%

3.0%

3.0%

3.2%

3.0%

3.0%

Para-professional — Blue collar

3.3%

3.0%

3.0%

3.2%

3.0%

3.0%

© 2016 Mercer LLC.

420

Global Compensation Planning Report — October Update

POLAND

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

7%

4%

2%

Executive

10%

7%

3%

Management — Nonsales

6%

5%

2%

Professional — Sales

7%

5%

2%

Professional — Nonsales

6%

5%

2%

Para-professional — White collar

7%

5%

2%

Para-professional — Blue collar

8%

6%

3%

MANDATORY PAY INCREASE SCHEMES Poland does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

97%

97%

78%

89%

85%

81%

Median target bonus (% of base pay)

20%

15%

20%

10%

10%

10%

Median maximum bonus (% of base pay)

30%

20%

30%

15%

15%

15%

© 2016 Mercer LLC.

421

Global Compensation Planning Report — October Update

POLAND

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Manufacturing

Para-professional

Finance

Professional

Sales

All levels

Manufacturing

Para-professional

IT Analysis and Design

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

149

August 1, 2015

Salary Movement Snapshot, September 2016

141

August 1, 2016

Poland Total Remuneration Survey, April 2016

410

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

422

Global Compensation Planning Report — October Update

ROMANIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 3.8%

Inflation, annual average change

2016: 5.0%

2015: -0.6%

2017: 3.8%

Unemployment

2016: -1.5%

2015: 6.8%

2017: 1.7%

2016: 6.4%

2017: 6.2%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

4.5%

4.2%

4.5%

4.3%

4.0%

4.5%

Executive

4.3%

4.2%

4.5%

4.0%

4.0%

4.5%

Management — Nonsales

4.4%

4.4%

4.5%

4.1%

4.0%

4.5%

Professional — Sales

4.5%

4.4%

4.5%

4.3%

4.2%

4.5%

Professional — Nonsales

4.5%

4.3%

4.5%

4.3%

4.1%

4.5%

Para-professional — White collar

4.4%

4.3%

4.5%

4.3%

4.0%

4.5%

Para-professional — Blue collar

4.3%

4.1%

4.5%

4.0%

4.0%

4.5%

© 2016 Mercer LLC.

423

Global Compensation Planning Report — October Update

ROMANIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

7%

4%

3%

Executive

8%

6%

4%

Management — Nonsales

7%

6%

3%

Professional — Sales

7%

5%

3%

Professional — Nonsales

7%

4%

3%

Para-professional — White collar

8%

6%

4%

Para-professional — Blue collar

7%

8%

6%

MANDATORY PAY INCREASE SCHEMES The Polish government determines a minimum monthly salary for each year. The minimum monthly salary was RON900 in July 2014 and RON1,050 in July 2015. As of May 1, 2016, the minimum salary is RON1,250. The minimum wage does not include fixed incomes, such as holiday allowance, Christmas/Easter allowance, or other specific allowances for public sector employees. The private sector is not directly affected by the situation in the public sector; private companies make their own decisions in particular cases according to internal requirements and the general economic environment.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

96%

98%

73%

89%

82%

66%

Median target bonus (% of base pay)

21%

15%

15%

10%

10%

10%

Median maximum bonus (% of base pay)

30%

24%

25%

15%

12%

10%

© 2016 Mercer LLC.

424

Global Compensation Planning Report — October Update

ROMANIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Sales

All levels

Finance

All levels

Manufacturing

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

95

August 1, 2015

Salary Movement Snapshot, September 2016

86

August 1, 2016

Romania Total Remuneration Survey, April 2016

190

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

425

Global Compensation Planning Report — October Update

RUSSIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: -3.7%

Inflation, annual average change

2016: -0.8%

2015: 15.5%

2017: 1.1%

Unemployment

2016: 7.2%

2015: 5.6%

2017: 5.0%

2016: 5.8%

2017: 5.9%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.8%

8.0%

8.0%

7.5%

8.0%

8.0%

Executive

7.7%

8.0%

8.0%

7.3%

8.0%

8.0%

Management — Nonsales

7.7%

8.0%

8.0%

7.5%

8.0%

8.0%

Professional — Sales

7.7%

8.0%

8.0%

7.4%

8.0%

8.0%

Professional — Nonsales

7.7%

8.0%

8.0%

7.4%

8.0%

8.0%

Para-professional — White collar

7.7%

8.0%

8.0%

7.4%

8.0%

8.0%

Para-professional — Blue collar

7.9%

8.0%

8.0%

7.5%

8.0%

8.0%

© 2016 Mercer LLC.

426

Global Compensation Planning Report — October Update

RUSSIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

12%

4%

3%

Executive

15%

6%

3%

Management — Nonsales

12%

5%

3%

Professional — Sales

13%

5%

3%

Professional — Nonsales

12%

5%

3%

Para-professional — White collar

13%

6%

3%

Para-professional — Blue collar

13%

8%

4%

MANDATORY PAY INCREASE SCHEMES Salary increases in Russia are in accordance with the Article 134 of the Labour Code of the Russian Federation (“Providing the increase of the real content of wages level”). Any increase in the real content of a wage level must account for pay indexation due to the increase of consumer prices for goods and services. State authorities, local governments and state and municipal institutions shall index wages according to the labour legislation and other legal acts containing labour law norms. In other organisations, indexation is according to the collective agreement, contracts, or the local acts of the company.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

97%

96%

82%

89%

82%

83%

Median target bonus (% of base pay)

20%

15%

17%

10%

10%

13%

Median maximum bonus (% of base pay)

36%

25%

25%

17%

15%

18%

© 2016 Mercer LLC.

427

Global Compensation Planning Report — October Update

RUSSIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Finance

Professional

Finance

Professional

Industry Specific

All levels

Sales

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

161

August 1, 2015

Salary Movement Snapshot, September 2016

171

August 1, 2016

Russia Total Remuneration Survey, April 2016

291

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

428

Global Compensation Planning Report — October Update

SERBIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 0.7%

Inflation, annual average change

2016: 2.5%

2015: 1.4%

2017: 2.8%

Unemployment

2016: 1.3%

2015: 18.5%

2017: 3.2%

2016: 18.6%

2017: 18.7%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

5.4%

4.5%

4.5%

5.0%

4.5%

4.5%

Executive

5.5%

4.7%

4.8%

5.0%

4.5%

4.6%

Management — Nonsales

5.4%

4.5%

4.6%

5.0%

4.5%

4.5%

Professional — Sales

5.5%

4.5%

4.5%

5.1%

4.5%

4.5%

Professional — Nonsales

5.4%

4.6%

4.6%

5.0%

4.5%

4.5%

Para-professional — White collar

5.5%

4.5%

4.6%

5.0%

4.5%

4.5%

Para-professional — Blue collar

5.2%

4.5%

4.5%

5.0%

4.4%

4.4%

© 2016 Mercer LLC.

429

Global Compensation Planning Report — October Update

SERBIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

12%

6%

7%

Executive

13%

8%

9%

Management — Nonsales

12%

6%

7%

Professional — Sales

14%

6%

7%

Professional — Nonsales

14%

8%

9%

Para-professional — White collar

14%

8%

9%

Para-professional — Blue collar

15%

9%

9%

MANDATORY PAY INCREASE SCHEMES Serbia does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

97%

98%

68%

82%

66%

65%

Median target bonus (% of base pay)

20%

15%

19%

10%

10%

10%

Median maximum bonus (% of base pay)

33%

23%

25%

13%

15%

17%

© 2016 Mercer LLC.

430

Global Compensation Planning Report — October Update

SERBIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Manufacturing

All levels

Information Technology

All levels

Sales

All levels

Manufacturing

All levels

Marketing

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

161

August 2015

Salary Movement Snapshot, September 2016

69

August 2016

Serbia Total Remuneration Survey, April 2016

110

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

431

Global Compensation Planning Report — October Update

SLOVAKIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 3.6%

Inflation, annual average change

2016: 3.4%

2015: -0.3%

2017: 3.3%

Unemployment

2016: -0.2%

2015: 11.5%

2017: 1.1%

2016: 9.9%

2017: 8.8%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

3.0%

2.7%

2.8%

3.0%

2.7%

2.8%

Executive

3.0%

2.7%

2.8%

3.0%

2.7%

2.7%

Management — Nonsales

3.0%

2.7%

2.8%

2.9%

2.6%

2.8%

Professional — Sales

3.0%

2.7%

2.8%

3.0%

2.7%

2.8%

Professional — Nonsales

3.0%

2.7%

2.8%

3.0%

2.7%

2.7%

Para-professional — White collar

3.0%

2.7%

2.8%

3.0%

2.7%

2.7%

Para-professional — Blue collar

3.0%

2.7%

2.8%

2.9%

2.6%

2.7%

© 2016 Mercer LLC.

432

Global Compensation Planning Report — October Update

SLOVAKIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

1%

4%

3%

Executive

1%

7%

6%

Management — Nonsales

3%

6%

4%

Professional — Sales

3%

4%

3%

Professional — Nonsales

3%

7%

6%

Para-professional — White collar

1%

8%

6%

Para-professional — Blue collar

3%

8%

7%

MANDATORY PAY INCREASE SCHEMES Slovakia does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

98%

100%

71%

94%

88%

86%

Median target bonus (% of base pay)

20%

16%

20%

12%

10%

12%

Median maximum bonus (% of base pay)

30%

26%

25%

17%

15%

16%

© 2016 Mercer LLC.

433

Global Compensation Planning Report — October Update

SLOVAKIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Manufacturing

Para-professional

Manufacturing

Para-professional

Sales

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

77

August 1, 2015

Salary Movement Snapshot, September 2016

75

August 1, 2016

Slovakia Total Remuneration Survey, April 2016

105

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

434

Global Compensation Planning Report — October Update

SLOVENIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 2.3%

Inflation, annual average change

2016: 2.3%

2015: -0.5%

2017: 1.8%

Unemployment

2016: -0.3%

2015: 9.0%

2017: 1.0%

2016: 8.2%

2017: 7.9%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

Executive

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

Management — Nonsales

2.5%

2.6%

2.6%

2.5%

2.5%

2.6%

Professional — Sales

2.5%

2.5%

2.6%

2.5%

2.5%

2.6%

Professional — Nonsales

2.5%

2.5%

2.6%

2.5%

2.5%

2.6%

Para-professional — White collar

2.5%

2.5%

2.6%

2.5%

2.5%

2.6%

Para-professional — Blue collar

2.6%

2.5%

2.5%

2.6%

2.5%

2.5%

© 2016 Mercer LLC.

435

Global Compensation Planning Report — October Update

SLOVENIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

0%

2%

0%

Executive

0%

2%

3%

Management — Nonsales

0%

2%

0%

Professional — Sales

0%

2%

0%

Professional — Nonsales

0%

2%

0%

Para-professional — White collar

0%

2%

0%

Para-professional — Blue collar

0%

2%

0%

MANDATORY PAY INCREASE SCHEMES Slovenia does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

98%

74%

91%

85%

78%

Median target bonus (% of base pay)

23%

15%

16%

10%

10%

10%

Median maximum bonus (% of base pay)

40%

25%

25%

16%

15%

16%

© 2016 Mercer LLC.

436

Global Compensation Planning Report — October Update

SLOVENIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Sales

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

43

August 2015

Salary Movement Snapshot, September 2016

45

August 2016

Slovenia Total Remuneration Survey, April 2016

60

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

437

Global Compensation Planning Report — October Update

TURKEY

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 4.0%

Inflation, annual average change

2016: 3.3%

2015: 7.7%

2017: 3.0%

Unemployment

2016: 8.4%

2015: 10.3%

2017: 8.2%

2016: 10.2%

2017: 10.2%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

7.7%

8.0%

8.0%

7.6%

8.0%

8.0%

Executive

7.8%

8.0%

8.0%

7.8%

8.0%

8.0%

Management — Nonsales

7.8%

8.0%

8.0%

7.8%

8.0%

8.0%

Professional — Sales

7.8%

8.0%

8.0%

7.7%

8.0%

8.0%

Professional — Nonsales

7.8%

8.0%

8.0%

7.8%

8.0%

8.0%

Para-professional — White collar

7.8%

8.0%

8.0%

7.7%

8.0%

8.0%

Para-professional — Blue collar

7.8%

8.0%

8.0%

7.8%

8.0%

8.0%

© 2016 Mercer LLC.

438

Global Compensation Planning Report — October Update

TURKEY

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

4%

4%

3%

Executive

5%

5%

4%

Management — Nonsales

3%

4%

4%

Professional — Sales

3%

4%

3%

Professional — Nonsales

4%

4%

3%

Para-professional — White collar

3%

4%

3%

Para-professional — Blue collar

4%

5%

4%

MANDATORY PAY INCREASE SCHEMES Turkey does not have a mandatory pay increase policy. There could be mandatory pay increases for unionised employees due to collective agreement requirements.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

99%

99%

74%

86%

76%

56%

Median target bonus (% of base pay)

23%

15%

15%

10%

8%

8%

Median maximum bonus (% of base pay)

35%

24%

25%

16%

15%

12%

© 2016 Mercer LLC.

439

Global Compensation Planning Report — October Update

TURKEY

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Industry Specific

All levels

Finance

All levels

Sales

All levels

Industry Specific

All levels

Sales

All levels

Supply and Logistics

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

124

August 2015

Salary Movement Snapshot, September 2016

120

August 2016

Turkey Total Remuneration Survey, May 2016

251

May 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

440

Global Compensation Planning Report — October Update

UKRAINE

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: -9.9%

Inflation, annual average change

2016: 1.5%

2015: 48.7%

2017: 2.5%

Unemployment

2016: 15.1%

2015: 9.1%

2017: 11.0%

2016: 9.0%

2017: 8.7%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

9.0%

10.0%

10.0%

8.6%

10.0%

10.0%

Executive

9.0%

10.0%

10.0%

9.0%

10.0%

10.0%

Management — Nonsales

9.0%

10.0%

10.0%

9.0%

10.0%

10.0%

Professional — Sales

9.0%

10.9%

10.0%

8.7%

10.7%

10.0%

Professional — Nonsales

9.0%

10.0%

10.0%

8.7%

10.0%

10.0%

Para-professional — White collar

9.0%

10.0%

10.0%

8.6%

10.0%

10.0%

Para-professional — Blue collar

9.0%

10.0%

10.0%

8.6%

10.0%

10.0%

© 2016 Mercer LLC.

441

Global Compensation Planning Report — October Update

UKRAINE

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

10%

2%

1%

Executive

7%

4%

3%

Management — Nonsales

8%

1%

2%

Professional — Sales

9%

2%

2%

Professional — Nonsales

9%

2%

2%

Para-professional — White collar

8%

2%

1%

Para-professional — Blue collar

8%

3%

2%

MANDATORY PAY INCREASE SCHEMES Ukraine does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

99%

100%

80%

93%

81%

73%

Median target bonus (% of base pay)

20%

15%

18%

12%

10%

13%

Median maximum bonus (% of base pay)

38%

25%

30%

18%

15%

21%

© 2016 Mercer LLC.

442

Global Compensation Planning Report — October Update

UKRAINE

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Information Technology

All levels

Industry Specific

All levels

Marketing

All levels

Marketing

All levels

Sales

All levels

Sales

All levels

Sales and Marketing

All levels

Sales and Marketing

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

88

August 1, 2015

Salary Movement Snapshot, September 2016

97

August 1, 2016

Ukraine Total Remuneration Survey, April 2016

133

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

443

Global Compensation Planning Report — October Update

UZBEKISTAN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 8.0%

Inflation, annual average change

2016: 6.0%

2015: 8.5%

2017: 6.0%

Unemployment

2016: 8.4%

2015: 10.1%

2017: 9.6%

2016: 10.1%

2017: 10.0%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

11.1%

10.7%

11.4%

9.5%

9.2%

11.3%

Executive

8.1%

15.0%

12.0%

5.5%

15.0%

11.0%

Management — Nonsales

10.0%

9.0%

10.0%

7.5%

9.0%

10.0%

Professional — Sales

10.0%

9.0%

10.0%

10.0%

9.0%

10.0%

Professional — Nonsales

13.0%

9.0%

9.0%

11.5%

9.0%

9.0%

Para-professional — White collar

10.0%

9.5%

12.5%

10.0%

9.0%

12.5%

Para-professional — Blue collar

15.5%

12.5%

15.0%

12.5%

10.0%

15.0%

© 2016 Mercer LLC.

444

Global Compensation Planning Report — October Update

UZBEKISTAN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

6%

9%

4%

Executive

17%

11%

13%

Management — Nonsales

8%

0%

0%

Professional — Sales

9%

14%

8%

Professional — Nonsales

0%

8%

0%

Para-professional — White collar

0%

9%

0%

Para-professional — Blue collar

0%

11%

0%

MANDATORY PAY INCREASE SCHEMES There is no legislation for mandatory salary increases in Uzbekistan, and any salary increases are at the discretion of individual companies.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

93%

100%

68%

95%

90%

77%

Median target bonus (% of base pay)

20%

16%

15%

10%

10%

10%

Median maximum bonus (% of base pay)

36%

32%

30%

25%

20%

20%

© 2016 Mercer LLC.

445

Global Compensation Planning Report — October Update

UZBEKISTAN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Marketing

All levels

Marketing

All levels

Quality

All levels

Quality

All levels

Sales

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

32

July 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

UZ Total Remuneration Survey, July 2016

© 2016 Mercer LLC.

446

Global Compensation Planning Report — October Update

MIDDLE EAST

BAHRAIN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 2.9%

Inflation, annual average change

2016: 2.1%

2015: 1.8%

2017: 1.8%

Unemployment

2016: 3.6%

2015: 1.2%

2017: 3.0%

2016: 1.3%

2017: 1.3%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

Executive

5.0%

5.0%

5.0%

4.8%

5.0%

5.0%

Management — Nonsales

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

Professional — Sales

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

Professional — Nonsales

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

Para-professional — White collar

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

Para-professional — Blue collar

5.0%

5.0%

5.0%

4.9%

5.0%

5.0%

© 2016 Mercer LLC.

448

Global Compensation Planning Report — October Update

BAHRAIN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

7%

3%

3%

Executive

10%

6%

5%

Management — Nonsales

10%

3%

3%

Professional — Sales

10%

3%

3%

Professional — Nonsales

10%

3%

3%

Para-professional — White collar

10%

5%

5%

Para-professional — Blue collar

7%

3%

3%

MANDATORY PAY INCREASE SCHEMES Bahrain does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

100%

65%

89%

84%

62%

Median target bonus (% of base pay)

25%

18%

17%

15%

13%

15%

Median maximum bonus (% of base pay)

33%

30%

35%

21%

16%

25%

© 2016 Mercer LLC.

449

Global Compensation Planning Report — October Update

BAHRAIN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Project Engineering

All levels

Sales

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

31

August 1, 2015

Salary Movement Snapshot, September 2016

38

August 1, 2016

Bahrain Total Remuneration Survey, May 2016

-

May 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

450

Global Compensation Planning Report — October Update

IRAN

Data for 2015

–

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 0.4%

Inflation, annual average change

2016: 4.5%

2015: 11.9%

2017: 4.1%

Unemployment

2016: 7.4%

2015: 10.8%

2017: 7.2%

2016: 11.3%

2017: 11.2%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

–

20.1%

20.2%

–

20.0%

20.1%

Executive

–

20.1%

20.2%

–

20.0%

20.1%

Management — Nonsales

–

20.1%

20.2%

–

20.0%

20.1%

Professional — Sales

–

20.1%

20.2%

–

20.0%

20.1%

Professional — Nonsales

–

20.1%

20.2%

–

20.0%

20.1%

Para-professional — White collar

–

20.1%

20.2%

–

20.0%

20.1%

Para-professional — Blue collar

–

21.6%

24.0%

–

20.2%

22.1%

Note: 2015 data are not available.

© 2016 Mercer LLC.

451

Global Compensation Planning Report — October Update

IRAN

Data for 2015

–

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

-

7%

7%

Executive

-

7%

7%

Management — Nonsales

-

7%

7%

Professional — Sales

-

7%

7%

Professional — Nonsales

-

7%

7%

Para-professional — White collar

-

7%

7%

Para-professional — Blue collar

-

8%

8%

MANDATORY PAY INCREASE SCHEMES Iran has a mandatory pay increase of 14% in 2016.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

95%

96%

82%

89%

82%

73%

Median target bonus (% of base pay)

20%

20%

16%

15%

13%

10%

Median maximum bonus (% of base pay)

30%

25%

25%

21%

16%

10%

IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated content will be available to download on November 29. Short-term incentive data currently reflect information reported in 2015.

© 2016 Mercer LLC.

452

Global Compensation Planning Report — October Update

IRAN

Data for 2015

–

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Finance

Management

Sales

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2016

15

August 1, 2016

Iran Total Remuneration Survey, May 2016

35

May 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

453

Global Compensation Planning Report — October Update

IRAQ

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: -2.4%

Inflation, annual average change

2016: 10.3%

2015: 1.4%

2017: 0.5%

Unemployment

2016: 2.0%

2015: 16.9%

2017: 2.0%

2016: 17.6%

2017: 17.7%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

5.3%

5.8%

6.0%

4.8%

5.8%

6.0%

Executive

5.3%

5.8%

5.9%

4.8%

5.8%

5.9%

Management — Nonsales

5.7%

5.8%

5.9%

5.0%

5.8%

5.9%

Professional — Sales

5.7%

5.8%

5.9%

5.0%

5.8%

5.9%

Professional — Nonsales

5.7%

5.8%

5.9%

5.0%

5.8%

5.9%

Para-professional — White collar

5.7%

5.8%

5.9%

5.0%

5.8%

5.9%

Para-professional — Blue collar

5.3%

5.8%

5.9%

4.8%

5.8%

5.9%

© 2016 Mercer LLC.

454

Global Compensation Planning Report — October Update

IRAQ

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

14%

0%

0%

Executive

14%

0%

0%

Management — Nonsales

13%

0%

0%

Professional — Sales

13%

0%

0%

Professional — Nonsales

13%

0%

0%

Para-professional — White collar

13%

0%

0%

Para-professional — Blue collar

14%

0%

0%

MANDATORY PAY INCREASE SCHEMES Iraq does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

100%

64%

73%

69%

56%

Median target bonus (% of base pay)

30%

18%

15%

15%

13%

–

Median maximum bonus (% of base pay)

60%

36%

28%

30%

23%

–

IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated content will be available to download on November 30. Short-term incentive data currently reflect information reported in 2015.

© 2016 Mercer LLC.

455

Global Compensation Planning Report — October Update

IRAQ

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Finance

All levels

Finance

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Iraq Total Remuneration Survey, June 2015

25

July 1, 2015

Salary Movement Snapshot, September 2015

15

August 1, 2015

Salary Movement Snapshot, September 2016

19

August 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

456

Global Compensation Planning Report — October Update

ISRAEL

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 2.5%

Inflation, annual average change

2016: 2.8%

2015: -0.6%

2017: 3.0%

Unemployment

2016: -0.6%

2015: 5.2%

2017: 0.8%

2016: 5.2%

2017: 5.2%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

3.2%

3.0%

3.1%

3.2%

3.0%

3.1%

Executive

3.1%

3.0%

3.1%

3.1%

3.0%

3.1%

Management — Nonsales

3.1%

3.0%

3.1%

3.1%

3.0%

3.1%

Professional — Sales

3.1%

3.0%

3.1%

3.1%

3.0%

3.1%

Professional — Nonsales

3.1%

3.0%

3.1%

3.1%

3.0%

3.1%

Para-professional — White collar

3.1%

3.0%

3.1%

3.1%

3.0%

3.1%

Para-professional — Blue collar

3.2%

3.0%

3.1%

3.1%

3.0%

3.1%

© 2016 Mercer LLC.

457

Global Compensation Planning Report — October Update

ISRAEL

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

4%

4%

2%

Executive

6%

4%

2%

Management — Nonsales

4%

3%

2%

Professional — Sales

4%

4%

2%

Professional — Nonsales

4%

3%

2%

Para-professional — White collar

4%

3%

2%

Para-professional — Blue collar

4%

4%

2%

MANDATORY PAY INCREASE SCHEMES Israel does not have a mandatory pay increase policy. Labour unions and employers have agreed to a series of incremental increases to the minimum wage. This would result in a minimum wage for full employment of ILR5,300 per month on December 1, 2017.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

97%

76%

94%

90%

82%

Median target bonus (% of base pay)

25%

15%

25%

12%

8%

8%

Median maximum bonus (% of base pay)

60%

30%

38%

19%

13%

13%

IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated content will be available to download on November 11. Short-term incentive data currently reflect information reported in 2015.

© 2016 Mercer LLC.

458

Global Compensation Planning Report — October Update

ISRAEL

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

-

-

-

-

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Israel Total Remuneration Survey, June 2015

51

June 1, 2015

Salary Movement Snapshot, September 2015

57

August 1, 2015

Salary Movement Snapshot, September 2016

58

August 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

459

Global Compensation Planning Report — October Update

JORDAN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 2.4%

Inflation, annual average change

2016: 2.8%

2015: -0.9%

2017: 3.3%

Unemployment

2016: -0.5%

2015: 12.8%

2017: 2.3%

2016: 13.2%

2017: 13.4%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

5.7%

5.0%

5.3%

5.7%

5.0%

5.3%

Executive

5.7%

5.0%

5.3%

5.7%

5.0%

5.3%

Management — Nonsales

5.7%

5.0%

5.3%

5.7%

5.0%

5.3%

Professional — Sales

5.7%

5.0%

5.3%

5.7%

5.0%

5.3%

Professional — Nonsales

5.7%

5.0%

5.3%

5.7%

5.0%

5.3%

Para-professional — White collar

5.7%

5.0%

5.3%

5.7%

5.0%

5.3%

Para-professional — Blue collar

5.7%

5.0%

5.3%

5.7%

5.0%

5.3%

© 2016 Mercer LLC.

460

Global Compensation Planning Report — October Update

JORDAN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

0%

0%

0%

Executive

0%

0%

0%

Management — Nonsales

0%

0%

0%

Professional — Sales

0%

0%

0%

Professional — Nonsales

0%

0%

0%

Para-professional — White collar

0%

0%

0%

Para-professional — Blue collar

0%

0%

0%

MANDATORY PAY INCREASE SCHEMES Jordan does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

100%

72%

83%

79%

55%

Median target bonus (% of base pay)

20%

15%

12%

13%

10%

10%

Median maximum bonus (% of base pay)

38%

26%

15%

18%

16%

10%

© 2016 Mercer LLC.

461

Global Compensation Planning Report — October Update

JORDAN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Finance

All levels

Administration

All levels

Industry Specific

All levels

Finance

All levels

Sales

All levels

Industry Specific

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

30

August 1, 2015

Salary Movement Snapshot, September 2016.

33

August 1, 2016

Jordan Total Remuneration Survey, May 2016

-

May 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

462

Global Compensation Planning Report — October Update

KUWAIT

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 1.1%

Inflation, annual average change

2016: 2.5%

2015: 3.2%

2017: 2.6%

Unemployment

2016: 3.4%

2015: 2.1%

2017: 3.8%

2016: 2.1%

2017: 2.1%

BASE PAY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

Executive

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

Management — Nonsales

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

Professional — Sales

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

Professional — Nonsales

5.0%

5.0%

5.0%

5.0%

5.0%

4.9%

Para-professional — White collar

5.0%

5.0%

5.0%

5.0%

5.0%

4.9%

Para-professional — Blue collar

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

© 2016 Mercer LLC.

463

Global Compensation Planning Report — October Update

KUWAIT

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

12%

6%

4%

Executive

12%

7%

7%

Management — Nonsales

12%

6%

4%

Professional — Sales

12%

6%

3%

Professional — Nonsales

12%

6%

7%

Para-professional — White collar

12%

6%

7%

Para-professional — Blue collar

12%

7%

7%

MANDATORY PAY INCREASE SCHEMES Kuwait does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

100%

67%

97%

86%

69%

Median target bonus (% of base pay)

22%

17%

10%

15%

13%

10%

Median maximum bonus (% of base pay)

36%

27%

35%

3%

16%

15%

IMPORTANT: Availability of data for some markets was limited at the time of release; this market contains data collected in 2015.

© 2016 Mercer LLC.

464

Global Compensation Planning Report — October Update

KUWAIT

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

Professional

Sales

All levels

Industry Specific

All levels

Sales

All levels

Top Management

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Kuwait Total Remuneration Survey, October 2016

59

October 26, 2016

Salary Movement Snapshot, September 2015

25

August 2015

Salary Movement Snapshot, September 2016

33

August 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

465

Global Compensation Planning Report — October Update

LEBANON

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 1.0%

Inflation, annual average change

2016: 1.0%

2015: -3.7%

2017: 2.0%

Unemployment

2016: -0.7%

2015: 7.1%

2017: 2.0%

2016: 7.3%

2017: 7.4%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

5.8%

5.4%

5.4%

5.8%

5.4%

5.4%

Executive

5.8%

5.4%

5.4%

5.8%

5.4%

5.4%

Management — Nonsales

5.8%

5.4%

5.4%

5.8%

5.4%

5.4%

Professional — Sales

5.8%

5.5%

5.4%

5.8%

5.5%

5.4%

Professional — Nonsales

5.8%

5.5%

5.4%

5.8%

5.5%

5.4%

Para-professional — White collar

5.8%

5.5%

5.4%

5.8%

5.5%

5.4%

Para-professional — Blue collar

5.8%

5.5%

5.4%

5.8%

5.5%

5.4%

© 2016 Mercer LLC.

466

Global Compensation Planning Report — October Update

LEBANON

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

6%

0%

0%

Executive

6%

0%

0%

Management — Nonsales

6%

0%

0%

Professional — Sales

6%

0%

0%

Professional — Nonsales

6%

0%

0%

Para-professional — White collar

6%

0%

0%

Para-professional — Blue collar

6%

0%

0%

MANDATORY PAY INCREASE SCHEMES Lebanon does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

100%

78%

97%

89%

78%

Median target bonus (% of base pay)

25%

17%

15%

15%

10%

9%

Median maximum bonus (% of base pay)

33%

26%

28%

21%

18%

14%

© 2016 Mercer LLC.

467

Global Compensation Planning Report — October Update

LEBANON

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Finance

All levels

Sales

All levels

Human Resources

All levels

Industry Specific

All levels

IT Analysis and Design

Professional

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

35

August 1, 2015

Lebanon Total Remuneration Survey, May 2015

53

May 1, 2015

Salary Movement Snapshot, September 2016

41

August 1, 2016

Lebanon Total Remuneration Survey, May 2016

51

May 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

468

Global Compensation Planning Report — October Update

OMAN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 3.3%

Inflation, annual average change

2016: 1.8%

2015: 0.1%

2017: 2.6%

Unemployment

2016: 1.1%

2015: 6.3%

2017: 3.1%

2016: 6.4%

2017: 6.4%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

Executive

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

Management — Nonsales

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

Professional — Sales

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

Professional — Nonsales

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

Para-professional — White collar

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

Para-professional — Blue collar

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

© 2016 Mercer LLC.

469

Global Compensation Planning Report — October Update

OMAN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

4%

0%

0%

Executive

4%

3%

3%

Management — Nonsales

4%

0%

0%

Professional — Sales

4%

0%

0%

Professional — Nonsales

4%

0%

0%

Para-professional — White collar

8%

0%

0%

Para-professional — Blue collar

8%

0%

0%

MANDATORY PAY INCREASE SCHEMES Oman does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

89%

90%

55%

80%

71%

57%

Median target bonus (% of base pay)

25%

15%

20%

13%

12%

6%

Median maximum bonus (% of base pay)

30%

20%

33%

13%

18%

–

IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated content will be available to download on November 11. Short-term incentive data currently reflect information reported in 2015.

© 2016 Mercer LLC.

470

Global Compensation Planning Report — October Update

OMAN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

Professional

Engineering

Sales

All levels

Professional, Para-professional

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Oman Total Remuneration Survey, May 2015

51

May 1, 2015

Salary Movement Snapshot, September 2015

27

August 1, 2015

Salary Movement Snapshot, September 2016

36

August 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

471

Global Compensation Planning Report — October Update

QATAR

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 3.7%

Inflation, annual average change

2016: 2.6%

2015: 1.8%

2017: 3.4%

Unemployment

2016: 3.0%

2015: 0.2%

2017: 3.1%

2016: 0.3%

2017: 0.3%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

Executive

5.0%

5.0%

5.0%

5.0%

4.9%

5.0%

Management — Nonsales

5.0%

5.0%

5.0%

5.0%

4.9%

5.0%

Professional — Sales

5.0%

5.0%

5.0%

5.0%

4.8%

5.0%

Professional — Nonsales

5.0%

5.0%

5.0%

5.0%

4.8%

5.0%

Para-professional — White collar

5.0%

5.0%

5.0%

5.0%

4.9%

5.0%

Para-professional — Blue collar

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

© 2016 Mercer LLC.

472

Global Compensation Planning Report — October Update

QATAR

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

7%

9%

5%

Executive

8%

10%

7%

Management — Nonsales

7%

8%

4%

Professional — Sales

8%

8%

4%

Professional — Nonsales

7%

8%

4%

Para-professional — White collar

7%

8%

4%

Para-professional — Blue collar

8%

9%

5%

MANDATORY PAY INCREASE SCHEMES Qatar does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

100%

76%

96%

88%

75%

Median target bonus (% of base pay)

20%

17%

15%

15%

13%

8%

Median maximum bonus (% of base pay)

25%

25%

25%

20%

16%

14%

© 2016 Mercer LLC.

473

Global Compensation Planning Report — October Update

QATAR

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Industry Specific

Para-professional

Industry Specific

Para-professional

Repair and Maintenance

Para-professional

Project engineering

All levels

Sales

All levels

Repair and Maintenance

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

41

August 1, 2015

Salary Movement Snapshot, September 2016

50

Ausgust 1, 2016

Qatar Total Remuneration Survey,May 2016

135

May 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

474

Global Compensation Planning Report — October Update

SAUDI ARABIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 3.5%

Inflation, annual average change

2016: 1.2%

2015: 2.2%

2017: 2.0%

Unemployment

2016: 4.0%

2015: 5.8%

2017: 2.0%

2016: 5.7%

2017: 5.7%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

Executive

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

Management — Nonsales

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

Professional — Sales

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

Professional — Nonsales

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

Para-professional — White collar

5.0%

5.0%

5.0%

5.0%

5.0%

5.0%

Para-professional — Blue collar

5.4%

5.0%

5.0%

5.3%

5.0%

5.0%

© 2016 Mercer LLC.

475

Global Compensation Planning Report — October Update

SAUDI ARABIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

5%

8%

3%

Executive

7%

8%

4%

Management — Nonsales

5%

9%

4%

Professional — Sales

5%

8%

3%

Professional — Nonsales

5%

9%

4%

Para-professional — White collar

5%

9%

4%

Para-professional — Blue collar

5%

10%

4%

MANDATORY PAY INCREASE SCHEMES Saudi Arabia does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

98%

99%

73%

90%

86%

79%

Median target bonus (% of base pay)

25%

18%

17%

15%

14%

15%

Median maximum bonus (% of base pay)

33%

25%

25%

20%

15%

15%

© 2016 Mercer LLC.

476

Global Compensation Planning Report — October Update

SAUDI ARABIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Industry Specific

All levels

Industry Specific

All levels

Sales

All levels

Sales

All levels

Supply and Logistics

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

82

August 1, 2015

Salary Movement Snapshot, September 2016

81

August 1, 2015

325

May 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

Saudi Arabia Total Remuneration Survey, May 2016

© 2016 Mercer LLC.

477

Global Compensation Planning Report — October Update

UNITED ARAB EMIRATES

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 4.0%

Inflation, annual average change

2016: 2.3%

2015: 4.1%

2017: 2.5%

Unemployment

2016: 3.6%

2015: 3.7%

2017: 3.1%

2016: 3.6%

2017: 3.6%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

5.0%

5.0%

5.0%

4.9%

5.0%

5.0%

Executive

5.0%

4.9%

5.0%

4.9%

4.9%

5.0%

Management — Nonsales

5.0%

5.0%

5.0%

4.9%

4.9%

5.0%

Professional — Sales

5.0%

4.9%

5.0%

5.0%

4.9%

5.0%

Professional — Nonsales

5.0%

5.0%

5.0%

4.9%

4.9%

5.0%

Para-professional — White collar

5.0%

4.9%

5.0%

4.9%

4.8%

5.0%

Para-professional — Blue collar

5.0%

4.9%

5.0%

4.9%

4.8%

5.0%

© 2016 Mercer LLC.

478

Global Compensation Planning Report — October Update

UNITED ARAB EMIRATES

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

8%

4%

5%

Executive

9%

5%

6%

Management — Nonsales

8%

5%

5%

Professional — Sales

8%

4%

5%

Professional — Nonsales

8%

5%

5%

Para-professional — White collar

8%

5%

5%

Para-professional — Blue collar

9%

7%

7%

MANDATORY PAY INCREASE SCHEMES The United Arab Emirates does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

97%

100%

70%

88%

81%

58%

Median target bonus (% of base pay)

25%

18%

15%

10%

10%

10%

Median maximum bonus (% of base pay)

39%

27%

24%

16%

15%

12%

© 2016 Mercer LLC.

479

Global Compensation Planning Report — October Update

UNITED ARAB EMIRATES

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Industry Specific

All levels

Industry Specific

All levels

Marketing

All levels

Marketing

All levels

Sales

All levels

Sales

All levels

Sales and Marketing

All levels

Sales and Marketing

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

118

August 1, 2015

Salary Movement Snapshot, September 2016

122

August 1, 2016

United Arab Emirates Total Remuneration Survey, May 2016

428

May 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

480

Global Compensation Planning Report — October Update

YEMEN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: -28.1%

Inflation, annual average change

2016: -4.2%

2015: 39.4%

2017: 12.6%

Unemployment

2016: 5.0%

2015: 15.9%

2017: 18.0%

2016: 16.4%

2017: 15.9%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

9.3%

8.2%

8.8%

9.1%

8.1%

8.5%

Executive

9.1%

8.2%

8.8%

8.9%

8.1%

8.5%

Management — Nonsales

9.3%

8.2%

8.8%

9.1%

8.1%

8.5%

Professional — Sales

9.3%

8.2%

8.8%

9.1%

8.1%

8.5%

Professional — Nonsales

9.3%

8.2%

8.8%

9.1%

8.1%

8.5%

Para-professional — White collar

9.3%

8.2%

8.8%

9.1%

8.1%

8.5%

Para-professional — Blue collar

9.3%

8.2%

8.8%

9.1%

8.1%

8.5%

© 2016 Mercer LLC.

481

Global Compensation Planning Report — October Update

YEMEN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

17%

8%

9%

Executive

17%

8%

9%

Management — Nonsales

17%

8%

9%

Professional — Sales

17%

8%

9%

Professional — Nonsales

17%

8%

9%

Para-professional — White collar

17%

8%

9%

Para-professional — Blue collar

17%

8%

9%

MANDATORY PAY INCREASE SCHEMES Yemen does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

100%

92%

100%

100%

100%

Median target bonus (% of base pay)

15%

13%

10%

10%

9%

9%

Median maximum bonus (% of base pay)

15%

15%

13%

13%

11%

11%

IMPORTANT: Availability of data for some markets was limited at the time of release; a revised PDF with updated content will be available to download on November 11. Short-term incentive data currently reflect information reported in 2015.

© 2016 Mercer LLC.

482

Global Compensation Planning Report — October Update

YEMEN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Repair and Maintenance

Professional

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Yemen Total Remuneration Survey, May 2015

29

May 1, 2015

Salary Movement Snapshot, September 2015

12

August 1, 2015

Salary Movement Snapshot, September 2016

12

August 1, 2016

International Monetary Fund, World Economic Outlook Database, October 2016

Not applicable

October 2016

International Labour Organisation, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015

Not applicable

November 2015

© 2016 Mercer LLC.

483

Global Compensation Planning Report — October Update

WESTERN EUROPE

AUSTRIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 0.9%

Inflation, annual average change

2016: 1.4%

2015: 0.8%

2017: 1.2%

Unemployment

2016: 0.9%

2015: 5.7%

2017: 1.5%

2016: 6.2%

2017: 6.4%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

2.7%

2.5%

2.6%

2.7%

2.5%

2.5%

Executive

2.7%

2.5%

2.5%

2.7%

2.5%

2.5%

Management — Nonsales

2.7%

2.5%

2.6%

2.7%

2.5%

2.6%

Professional — Sales

2.7%

2.5%

2.6%

2.7%

2.5%

2.5%

Professional — Nonsales

2.7%

2.5%

2.6%

2.7%

2.5%

2.6%

Para-professional — White collar

2.7%

2.5%

2.6%

2.6%

2.5%

2.6%

Para-professional — Blue collar

2.7%

2.5%

2.6%

2.7%

2.5%

2.6%

© 2016 Mercer LLC.

485

Global Compensation Planning Report — October Update

AUSTRIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

4%

6%

4%

Executive

4%

7%

5%

Management — Nonsales

4%

7%

4%

Professional — Sales

4%

6%

4%

Professional — Nonsales

4%

7%

4%

Para-professional — White collar

5%

0%

0%

Para-professional — Blue collar

4%

0%

0%

MANDATORY PAY INCREASE SCHEMES As collective agreements have a binding force of statute in Austria, pay increases determined in the negotiation process are mandatory. Collective bargaining in Austria is conducted at the sectoral level and is differentiated into a large number of separate agreements (for example, for blue- and white-collar workers, or for industrial and craft production). However, it is coordinated across the economy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

99%

98%

79%

78%

56%

45%

Median target bonus (% of base pay)

25%

15%

10%

10%

5%

4%

Median maximum bonus (% of base pay)

40%

24%

18%

13%

9%

7%

© 2016 Mercer LLC.

486

Global Compensation Planning Report — October Update

AUSTRIA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Finance

All levels

Finance

All levels

Sales

All levels

Marketing

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

117

August 1, 2015

Salary Movement Snapshot, September 2016

121

August 1, 2016

Austria Total Remuneration Survey, April 2016

171

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

487

Global Compensation Planning Report — October Update

BELGIUM

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 1.4%

Inflation, annual average change

2016: 1.4%

2015: 0.6%

2017: 1.4%

Unemployment

2016: 2.1%

2015: 8.5%

2017: 1.6%

2016: 8.4%

2017: 8.3%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

2.0%

2.0%

2.1%

2.0%

2.0%

2.1%

Executive

2.1%

2.0%

2.1%

2.0%

2.0%

2.0%

Management — Nonsales

2.0%

2.0%

2.1%

2.0%

2.0%

2.1%

Professional — Sales

2.0%

2.0%

2.1%

2.0%

2.0%

2.1%

Professional — Nonsales

2.0%

2.0%

2.1%

2.0%

2.0%

2.1%

Para-professional — White collar

2.0%

2.0%

2.1%

2.0%

2.0%

2.1%

Para-professional — Blue collar

2.0%

2.0%

2.0%

2.0%

2.0%

2.0%

© 2016 Mercer LLC.

488

Global Compensation Planning Report — October Update

BELGIUM

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

3%

2%

2%

Executive

6%

3%

3%

Management — Nonsales

4%

2%

2%

Professional — Sales

4%

2%

2%

Professional — Nonsales

3%

2%

2%

Para-professional — White collar

4%

2%

2%

Para-professional — Blue collar

4%

3%

3%

MANDATORY PAY INCREASE SCHEMES Collective labour agreements adjust salaries in line with price inflation. Indexation links to the Health Index, defined as consumer price index excluding fuel, alcohol, and tobacco. Timing of adjustments varies by industry sector.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

99%

100%

81%

84%

69%

50%

Median target bonus (% of base pay)

25%

15%

12%

9%

5%

4%

Median maximum bonus (% of base pay)

35%

20%

20%

12%

8%

6%

© 2016 Mercer LLC.

489

Global Compensation Planning Report — October Update

BELGIUM

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Industry Specific

All levels

Project Engineering

All levels

Sales

All levels

Repair and Maintenance

All levels

Sales and Marketing

All levels

Sales

All levels

Sales and Marketing

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

122

August 1, 2015

Salary Movement Snapshot, September 2016

127

August 1, 2016

Belgium Total Remuneration Survey, April 2016

268

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

490

Global Compensation Planning Report — October Update

CYPRUS

Data for 2015

Estimated

Data for 2016

Forecast

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 1.5%

Inflation, annual average change

2016: 2.8%

2015: -1.5%

2017: 2.2%

Unemployment

2016: -1.0%

2015: 14.9%

2017: 0.5%

2016: 13.0%

2017: 11.7%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

0.0% - 0.2%

0.0% - 1.0%

0.0% - 1.0%

0.0% - 0.2%

0.0% - 1.0%

–

Executive

0.0% - 0.2%

0.0% - 1.0%

0.0% - 1.0%

0.0% - 0.2%

0.0% - 1.0%

–

Management — Nonsales

0.0% - 0.2%

0.0% - 1.0%

0.0% - 1.0%

0.0% - 0.2%

0.0% - 1.0%

–

Professional — Sales

0.0% - 0.2%

0.0% - 1.0%

0.0% - 1.0%

0.0% - 0.2%

0.0% - 1.0%

–

Professional — Nonsales

0.0% - 0.2%

0.0% - 1.0%

0.0% - 1.0%

0.0% - 0.2%

0.0% - 1.0%

–

Para-professional — White collar

0.0% - 0.2%

0.0% - 1.0%

0.0% - 1.0%

0.0% - 0.2%

0.0% - 1.0%

–

Para-professional — Blue collar

0.0% - 0.2%

0.0% - 1.0%

0.0% - 1.0%

0.0% - 0.2%

0.0% - 1.0%

–

© 2016 Mercer LLC.

491

Global Compensation Planning Report — October Update

CYPRUS

Data for 2015

Estimated

Data for 2016

Forecast

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

95%

90%

60%

Executive

95%

90%

60%

Management — Nonsales

95%

90%

60%

Professional — Sales

95%

90%

60%

Professional — Nonsales

95%

90%

60%

Para-professional — White collar

95%

90%

60%

Para-professional — Blue collar

95%

90%

60%

MANDATORY PAY INCREASE SCHEMES Cost-of-living adjustment (COLA) is offered twice a year – in January (for the previous year) and in July. It has effectively been frozen through the end of 2016 for the duration of the Troika sponsored plan. International lenders would like to see these changes become permanent, but that is not possible. However, social partners have started a dialogue under the guidance of the Ministry of Labour, Welfare and Social Insurance to formulate a new system for COLA. Companies and organisations with collective agreements in force have: •• Automatic pay-scale increases. •• Agreed pay increases across the board (at sector and/or industry and/or company levels, depending on the collective agreement in force). The Cypriot government has decided that, as of January 1, 2017, automatic pay-scale increases will be reinstated for all public and semi-public employees (utilities, municipalities etc).

© 2016 Mercer LLC.

492

Global Compensation Planning Report — October Update

CYPRUS

Data for 2015

Estimated

Data for 2016

Forecast

Data for 2017

Forecast

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

<5%

<5%

95%

<5%

–

–

Median target bonus (% of base pay)

10%

10%

15%

10%

–

–

Median maximum bonus (% of base pay)

20%

15%

20%

15%

–

–

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Finance and Accounting

Qualified certified accountants

Finance and Accounting

Health Industry Professionals

Highly qualified medical doctors

Qualified certified Accountants and Financial professionals

Information Technology (computer programmers, network engineers, etc.)

All levels, Especially entry-and mid-level

Health Industry Professionals

Highly qualified medical doctors

Legal

Entry–level qualified lawyers

Information Technology (computer programmers, network engineers, etc.)

All levels, Especially entry-and mid-level

Sales Professionals

Medium and higher levels and all industries

Legal

Entry–level qualified lawyers

Gas and Oil Professionals and Alternative Sources of Energy ( Will be required in the coming months and years)

Sales Professionals

All Levels, All industries

All levels, Especially entry-and mid-level

Engineers Mainly Civil Engineers and Project Managers

All levels, Especially entry-and mid-level

© 2016 Mercer LLC.

493

Global Compensation Planning Report — October Update

CYPRUS

Data for 2015

Estimated

Data for 2016

Forecast

Data for 2017

Forecast

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Survey of Economic Confidence by the University of Cyprus, September 2016

–

–

The Statistical Service of Cyprus

–

–

Consultant Estimates

–

–

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

494

Global Compensation Planning Report — October Update

DENMARK

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 1.0%

Inflation, annual average change

2016: 1.0%

2015: 0.5%

2017: 1.4%

Unemployment

2016: 0.4%

2015: 6.2%

2017: 1.1%

2016: 6.0%

2017: 5.8%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

2.3%

2.4%

2.5%

2.3%

2.3%

2.5%

Executive

2.4%

2.5%

2.5%

2.3%

2.4%

2.5%

Management — Nonsales

2.3%

2.4%

2.5%

2.2%

2.3%

2.5%

Professional — Sales

2.3%

2.3%

2.5%

2.3%

2.3%

2.5%

Professional — Nonsales

2.3%

2.3%

2.5%

2.2%

2.3%

2.5%

Para-professional — White collar

2.3%

2.3%

2.5%

2.2%

2.3%

2.5%

Para-professional — Blue collar

2.3%

2.3%

2.5%

2.2%

2.3%

2.5%

© 2016 Mercer LLC.

495

Global Compensation Planning Report — October Update

DENMARK

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

4%

3%

3%

Executive

6%

4%

3%

Management — Nonsales

6%

3%

3%

Professional — Sales

5%

3%

3%

Professional — Nonsales

5%

3%

3%

Para-professional — White collar

5%

3%

3%

Para-professional — Blue collar

6%

3%

3%

MANDATORY PAY INCREASE SCHEMES Denmark does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

97%

99%

82%

83%

60%

44%

Median target bonus (% of base pay)

25%

15%

10%

8%

5%

4%

Median maximum bonus (% of base pay)

40%

25%

20%

13%

10%

6%

© 2016 Mercer LLC.

496

Global Compensation Planning Report — October Update

DENMARK

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Finance

All levels

Finance

All levels

Industry Specific

Professional

Industry Specific

All levels

IT Analyst and Design

All levels

Sales

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

121

August 1, 2015

Salary Movement Snapshot, September 2016

124

August 1, 2016

Denmark Total Remuneration Survey, June 2016

245

June 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

497

Global Compensation Planning Report — October Update

FINLAND

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 0.2%

Inflation, annual average change

2016: 0.9%

2015: -0.2%

2017: 1.1%

Unemployment

2016: 0.4%

2015: 9.3%

2017: 1.2%

2016: 9.1%

2017: 8.9%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

2.2%

2.0%

2.0%

2.2%

2.0%

2.0%

Executive

2.2%

2.0%

2.0%

2.2%

2.0%

2.0%

Management — Nonsales

2.2%

2.0%

2.0%

2.2%

2.0%

2.0%

Professional — Sales

2.2%

2.0%

2.0%

2.2%

2.0%

2.0%

Professional — Nonsales

2.2%

2.0%

2.0%

2.1%

2.0%

2.0%

Para-professional — White collar

2.2%

2.0%

2.0%

2.2%

2.0%

2.0%

Para-professional — Blue collar

2.2%

2.0%

2.0%

2.2%

2.0%

2.0%

© 2016 Mercer LLC.

498

Global Compensation Planning Report — October Update

FINLAND

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

1%

4%

1%

Executive

4%

5%

3%

Management — Nonsales

1%

4%

1%

Professional — Sales

1%

4%

1%

Professional — Nonsales

1%

4%

1%

Para-professional — White collar

1%

4%

1%

Para-professional — Blue collar

1%

6%

3%

MANDATORY PAY INCREASE SCHEMES Finland does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

99%

83%

91%

83%

67%

Median target bonus (% of base pay)

20%

13%

10%

8%

5%

5%

Median maximum bonus (% of base pay)

33%

20%

17%

10%

8%

8%

© 2016 Mercer LLC.

499

Global Compensation Planning Report — October Update

FINLAND

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Information Technology Development and Support

Professional

Engineering

All levels

Repair and Maintenance

Para-professional

Marketing

All levels

Sales

All levels

Sales

All levels

Sales and Marketing

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

93

August 2015

Finland Total Remuneration Survey, June 2015

203

June 1, 2015

88

May 2016

Not applicable

October 2016

Salary Movement Snapshot, June 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

500

Global Compensation Planning Report — October Update

FRANCE

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 1.3%

Inflation, annual average change

2016: 1.3%

2015: 0.1%

2017: 1.3%

Unemployment

2016: 0.4%

2015: 10.4%

2017: 1.1%

2016: 9.8%

2017: 9.6%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

2.3%

2.1%

2.2%

2.2%

2.1%

2.2%

Executive

2.1%

2.0%

2.2%

2.0%

2.0%

2.2%

Management — Nonsales

2.3%

2.1%

2.2%

2.1%

2.0%

2.2%

Professional — Sales

2.2%

2.0%

2.2%

2.0%

2.0%

2.2%

Professional — Nonsales

2.3%

2.1%

2.2%

2.1%

2.0%

2.2%

Para-professional — White collar

2.2%

2.0%

2.2%

2.0%

2.0%

2.2%

Para-professional — Blue collar

2.2%

2.0%

2.2%

2.0%

2.0%

2.2%

© 2016 Mercer LLC.

501

Global Compensation Planning Report — October Update

FRANCE

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

6%

2%

3%

Executive

8%

3%

3%

Management — Nonsales

6%

2%

3%

Professional — Sales

7%

3%

3%

Professional — Nonsales

6%

3%

3%

Para-professional — White collar

6%

3%

3%

Para-professional — Blue collar

7%

3%

3%

MANDATORY PAY INCREASE SCHEMES France does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

98%

95%

76%

82%

–

–

Median target bonus (% of base pay)

20%

11%

15%

8%

–

–

Median maximum bonus (% of base pay)

30%

16%

17%

10%

–

–

© 2016 Mercer LLC.

502

Global Compensation Planning Report — October Update

FRANCE

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Manufacturing

All levels

Finance

All levels

Repair and Maintenance

All levels

Marketing

All levels

Sales

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

158

August 1, 2015

Salary Movement Snapshot, September 2016

166

August 1, 2016

France Total Remuneration Survey, April 2016

503

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

503

Global Compensation Planning Report — October Update

GERMANY

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 1.5%

Inflation, annual average change

2016: 1.7%

2015: 0.1%

2017: 1.4%

Unemployment

2016: 0.4%

2015: 4.6%

2017: 1.5%

2016: 4.3%

2017: 4.5%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

2.8%

2.7%

2.9%

2.7%

2.7%

2.9%

Executive

2.7%

2.7%

2.9%

2.6%

2.7%

2.9%

Management — Nonsales

2.7%

2.7%

2.9%

2.7%

2.7%

2.9%

Professional — Sales

2.8%

2.7%

2.9%

2.7%

2.7%

2.8%

Professional — Nonsales

2.8%

2.7%

2.9%

2.7%

2.7%

2.9%

Para-professional — White collar

2.8%

2.7%

2.9%

2.8%

2.7%

2.9%

Para-professional — Blue collar

2.8%

2.7%

2.9%

2.8%

2.7%

2.9%

© 2016 Mercer LLC.

504

Global Compensation Planning Report — October Update

GERMANY

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

5%

2%

2%

Executive

7%

2%

3%

Management — Nonsales

5%

2%

2%

Professional — Sales

5%

2%

2%

Professional — Nonsales

5%

2%

3%

Para-professional — White collar

5%

2%

3%

Para-professional — Blue collar

5%

3%

3%

MANDATORY PAY INCREASE SCHEMES There are no country-wide mandatory increases in Germany. Some companies are bound by collective agreements that institute salary increases for employees at the para-professional and professional levels.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

99%

98%

72%

73%

50%

38%

Median target bonus (% of base pay)

25%

15%

15%

10%

5%

5%

Median maximum bonus (% of base pay)

36%

23%

20%

13%

10%

8%

© 2016 Mercer LLC.

505

Global Compensation Planning Report — October Update

GERMANY

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Finance

All levels

Finance

All levels

Sales

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

177

August 1, 2015

Salary Movement Snapshot, September 2016

181

August 1, 2016

Germany Total Remuneration Survey, April 2016

516

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

506

Global Compensation Planning Report — October Update

GREECE

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: -0.2%

Inflation, annual average change

2016: 0.1%

2015: -1.1%

2017: 2.7%

Unemployment

2016: -0.10%

2015: 25.%

2017: 0.6%

2016: 23.3%

2017: 21.5%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

1.9%

1.7%

1.9%

1.7%

1.6%

1.8%

Executive

1.9%

1.6%

1.9%

1.6%

1.5%

1.8%

Management — Nonsales

1.9%

1.7%

1.9%

1.6%

1.6%

1.8%

Professional — Sales

1.9%

1.7%

1.9%

1.6%

1.6%

1.8%

Professional — Nonsales

1.9%

1.7%

1.9%

1.7%

1.6%

1.8%

Para-professional — White collar

1.9%

1.7%

1.9%

1.5%

1.6%

1.8%

Para-professional — Blue collar

1.9%

1.7%

1.9%

1.6%

1.6%

1.8%

© 2016 Mercer LLC.

507

Global Compensation Planning Report — October Update

GREECE

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

14%

9%

7%

Executive

16%

9%

8%

Management — Nonsales

14%

9%

7%

Professional — Sales

15%

9%

7%

Professional — Nonsales

15%

8%

7%

Para-professional — White collar

16%

8%

7%

Para-professional — Blue collar

16%

9%

8%

MANDATORY PAY INCREASE SCHEMES Greece does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

100%

73%

81%

64%

42%

Median target bonus (% of base pay)

23%

15%

15%

9%

7%

6%

Median maximum bonus (% of base pay)

40%

21%

21%

14%

10%

8%

© 2016 Mercer LLC.

508

Global Compensation Planning Report — October Update

GREECE

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Finance

Professional

Finance

All levels

Industry Specific

All levels

Information Technology

All levels

Marketing

All levels

IT Deployment and Support

All levels

Sales

All levels

Marketing

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

78

August 1, 2015

Salary Movement Snapshot, September 2016

73

August 1, 2016

Greece Total Remuneration Survey, April 2016

152

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

509

Global Compensation Planning Report — October Update

IRELAND

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 26.3%

2016: 4.9%

Inflation, annual average change 2015: -0.03%

2017: 3.2%

Unemployment

2016: 0.3%

2015: 9.5%

2017: 1.2%

2016: 8.3

2017: 7.7%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

2.0%

2.4%

2.5%

2.0%

2.4%

2.5%

Executive

2.0%

2.4%

2.5%

2.0%

2.4%

2.5%

Management — Nonsales

2.0%

2.4%

2.5%

2.0%

2.4%

2.5%

Professional — Sales

2.0%

2.4%

2.5%

2.0%

2.4%

2.5%

Professional — Nonsales

2.0%

2.4%

2.5%

2.0%

2.4%

2.5%

Para-professional — White collar

2.0%

2.4%

2.5%

2.0%

2.4%

2.5%

Para-professional — Blue collar

2.0%

2.3%

2.5%

2.0%

2.2%

2.5%

© 2016 Mercer LLC.

510

Global Compensation Planning Report — October Update

IRELAND

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

5%

3%

3%

Executive

7%

6%

4%

Management — Nonsales

6%

4%

3%

Professional — Sales

5%

5%

4%

Professional — Nonsales

6%

4%

3%

Para-professional — White collar

6%

5%

5%

Para-professional — Blue collar

7%

4%

3%

MANDATORY PAY INCREASE SCHEMES Ireland does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

98%

98%

77%

90%

83%

66%

Median target bonus (% of base pay)

24%

15%

10%

10%

8%

6%

Median maximum bonus (% of base pay)

40%

25%

18%

15%

10%

10%

© 2016 Mercer LLC.

511

Global Compensation Planning Report — October Update

IRELAND

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Finance

All levels

Industry Specific

All levels

Industry Specific

All levels

Information Technology

All levels

Sales

Professional

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

96

August 1, 2015

Salary Movement Snapshot, September 2016

113

August 1, 2016

Ireland Total Remuneration Survey, April 2016

154

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

512

Global Compensation Planning Report — October Update

ITALY

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 0.8%

Inflation, annual average change

2016: 0.8%

2015: 0.1%

2017: 0.9%

Unemployment

2016: -0.1%

2015: 11.9%

2017: 0.5%

2016: 11.5%

2017: 11.2%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

2.5%

2.3%

2.5%

2.5%

2.3%

2.5%

Executive

2.5%

2.3%

2.5%

2.4%

2.3%

2.5%

Management — Nonsales

2.5%

2.4%

2.5%

2.5%

2.3%

2.5%

Professional — Sales

2.5%

2.3%

2.5%

2.5%

2.3%

2.5%

Professional — Nonsales

2.5%

2.3%

2.5%

2.5%

2.3%

2.5%

Para-professional — White collar

2.5%

2.4%

2.5%

2.5%

2.3%

2.5%

Para-professional — Blue collar

2.5%

2.3%

2.5%

2.4%

2.2%

2.5%

© 2016 Mercer LLC.

513

Global Compensation Planning Report — October Update

ITALY

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

4%

3%

2%

Executive

5%

3%

2%

Management — Nonsales

4%

3%

2%

Professional — Sales

5%

3%

2%

Professional — Nonsales

4%

3%

2%

Para-professional — White collar

5%

3%

2%

Para-professional — Blue collar

6%

3%

2%

MANDATORY PAY INCREASE SCHEMES Italy’s national collective agreements (CCNLs) are usually negotiated every three years, for both establishing minimum salaries for each employee group and level and other terms and conditions. The CCNL increase cannot be absorbed unless this point is clearly stated in the hiring contract. Some companies absorb CCNL from annual merit increases, but in such cases it has to be stated in writing and the total increase amount has to be greater than the CCNL increase.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

99%

99%

–

–

–

–

Median target bonus (% of base pay)

25%

20%

–

–

–

–

Median maximum bonus (% of base pay)

40%

25%

–

–

–

–

© 2016 Mercer LLC.

514

Global Compensation Planning Report — October Update

ITALY

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Manufacturing

Professional

Manufacturing

All levels

Project Engineering

All levels

Sales

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

142

August 1, 2015

Salary Movement Snapshot, June 2016

160

May 1, 2016

Italy Total Remuneration Survey, April 2016

377

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

515

Global Compensation Planning Report — October Update

LUXEMBOURG

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 4.8%

Inflation, annual average change

2016: 3.5%

2015: 0.1%

2017: 3.1%

Unemployment

2016: 0.2%

2015: 6.9%

2017: 1.0%

2016: 6.4%

2017: 6.3%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

2.5%

2.5%

2.5%

2.5%

2.0%

2.5%

Executive

2.5%

2.5%

2.5%

2.5%

2.0%

2.5%

Management — Nonsales

2.5%

2.5%

2.5%

2.5%

2.3%

2.5%

Professional — Sales

2.5%

2.3%

2.5%

2.5%

2.0%

2.5%

Professional — Nonsales

2.5%

2.3%

2.5%

2.5%

2.0%

2.4%

Para-professional — White collar

2.5%

2.5%

2.5%

2.5%

2.0%

2.4%

Para-professional — Blue collar

2.5%

2.0%

2.5%

2.5%

2.0%

2.4%

© 2016 Mercer LLC.

516

Global Compensation Planning Report — October Update

LUXEMBOURG

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

6%

7%

5%

Executive

6%

7%

5%

Management — Nonsales

6%

7%

5%

Professional — Sales

6%

7%

5%

Professional — Nonsales

6%

7%

5%

Para-professional — White collar

6%

7%

7%

Para-professional — Blue collar

7%

7%

5%

MANDATORY PAY INCREASE SCHEMES Luxembourg has not amended its salary index since October 2013, but will likely do so in late 2016 or early 2017.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

93%

100%

67%

86%

47%

0%

Median target bonus (% of base pay)

30%

15%

12%

10%

6%

–

Median maximum bonus (% of base pay)

46%

25%

18%

15%

–

–

© 2016 Mercer LLC.

517

Global Compensation Planning Report — October Update

LUXEMBOURG

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

–

–

–

–

Note: Data are not available.

Note: Data are not available.

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

35

August 1, 2015

Salary Movement Snapshot, September 2016

47

August 1, 2016

Luxembourg Total Remuneration Survey, April 2016

35

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

518

Global Compensation Planning Report — October Update

MALTA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 6.2%

Inflation, annual average change

2016: 4.1%

2015: 1.2%

2017: 3.4%

Unemployment

2016: 1.2%

2015: 5.4%

2017: 1.5%

2016: 4.8%

2017: 4.9%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

1.5%

4.9%

2.6%

1.5%

4.9%

2.6%

Executive

1.8%

7.7%

–

1.8%

7.7%

–

Management — Nonsales

1.8%

3.6%

–

1.8%

3.6%

–

Professional — Sales

1.5%

0.8%

–

1.5%

0.8%

–

Professional — Nonsales

1.5%

4.6%

–

1.5%

4.6%

–

Para-professional — White collar

1.5%

5.8%

–

1.5%

5.8%

–

Para-professional — Blue collar

1.5%

3.7%

–

1.5%

3.7%

–

IMPORTANT: Availability of data for some markets was limited at the time of release; this market will be updated in GCPR-Online as data become available.

© 2016 Mercer LLC.

519

Global Compensation Planning Report — October Update

MALTA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

–

–

–

Executive

–

–

–

Management — Nonsales

–

–

–

Professional — Sales

–

–

–

Professional — Nonsales

–

–

–

Para-professional — White collar

–

–

–

Para-professional — Blue collar

–

–

–

Note: Data are not available.

MANDATORY PAY INCREASE SCHEMES In 2016, Malta increased the minimum wage from EUR166.26 to EUR168.01 per week. The Maltese government will publish the 2017 budget in late October 2016.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

53%

50%

47%

39%

53%

36%

Median target bonus (% of base pay)

20%

15%

12%

14%

16%

5%

Median maximum bonus (% of base pay)

25%

30%

20%

20%

30%

15%

IMPORTANT: Availability of data for some markets was limited at the time of release; this market contains data collected in 2015.

© 2016 Mercer LLC.

520

Global Compensation Planning Report — October Update

MALTA

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

All

Operational

Financial Services

Finance

Managerial

Accounts professionals at all levels

All

Administration

Information and Communications Technology

Software developers/ Engineers

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

The MISCO Salaries and Benefits Report 2016/17

7,000 remuneration packages

September 2016-On-going

The MISCO Salaries and Benefits Report 2015/16

7,000 remuneration packages

October 2015-September 2016

The MISCO Salaries and Benefits Report 2014/15

7,000 remuneration packages

October 2014-September 2015

Varies

Varies

Not applicable

October 2016

MISCO Consulting Limited, October 2016 International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

521

Global Compensation Planning Report — October Update

NETHERLANDS

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 2.0%

Inflation, annual average change

2016: 1.7%

2015: 0.2%

2017: 1.6%

Unemployment

2016: 0.1%

2015: 6.9%

2017: 0.9%

2016: 6.7%

2017: 6.5%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

Executive

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

Management — Nonsales

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

Professional — Sales

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

Professional — Nonsales

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

Para-professional — White collar

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

Para-professional — Blue collar

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

© 2016 Mercer LLC.

522

Global Compensation Planning Report — October Update

NETHERLANDS

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

6%

3%

2%

Executive

9%

4%

2%

Management — Nonsales

6%

3%

2%

Professional — Sales

6%

3%

2%

Professional — Nonsales

6%

3%

2%

Para-professional — White collar

7%

3%

2%

Para-professional — Blue collar

7%

3%

2%

MANDATORY PAY INCREASE SCHEMES Dutch employers are not subject to general mandatory increases, but 49% of them do have collective bargaining agreements affecting base salaries. Such agreements may affect all employees or only some groups, such as blue-collar workers.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

98%

98%

73%

83%

61%

44%

Median target bonus (% of base pay)

77%

81%

79%

82%

82%

81%

Median maximum bonus (% of base pay)

40%

24%

15%

13%

10%

8%

© 2016 Mercer LLC.

523

Global Compensation Planning Report — October Update

NETHERLANDS

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Industry Specific

All levels

Industry Specific

All levels

Sales

All levels

Sales

All levels

Sales and Marketing

All levels

Supply and Logistics

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

148

August 1, 2015

Salary Movement Snapshot, September 2016

164

August 1, 2016

Netherlands Total Remuneration Survey, April 2016

309

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

524

Global Compensation Planning Report — October Update

NORWAY

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 1.6%

Inflation, annual average change

2016: 0.8%

2015: 2.2%

2017: 1.2%

Unemployment

2016: 3.2%

2015: 4.4%

2017: 2.3%

2016: 4.7%

2017: 4.5%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

3.0%

2.9%

3.0%

3.0%

2.8%

3.0%

Executive

3.0%

2.9%

3.0%

2.8%

2.8%

3.0%

Management — Nonsales

3.0%

2.9%

3.0%

2.9%

2.7%

2.9%

Professional — Sales

3.0%

2.9%

3.0%

3.0%

2.8%

3.0%

Professional — Nonsales

3.0%

2.9%

3.0%

2.9%

2.8%

2.9%

Para-professional — White collar

3.0%

2.9%

3.0%

3.0%

2.8%

3.0%

Para-professional — Blue collar

3.0%

2.9%

3.0%

3.0%

2.7%

2.9%

© 2016 Mercer LLC.

525

Global Compensation Planning Report — October Update

NORWAY

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

5%

8%

4%

Executive

7%

8%

5%

Management — Nonsales

6%

9%

5%

Professional — Sales

6%

6%

3%

Professional — Nonsales

6%

8%

5%

Para-professional — White collar

6%

8%

5%

Para-professional — Blue collar

7%

8%

5%

MANDATORY PAY INCREASE SCHEMES Norway does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

98%

98%

77%

79%

69%

55%

Median target bonus (% of base pay)

25%

15%

10%

8%

7%

6%

Median maximum bonus (% of base pay)

45%

25%

18%

13%

10%

10%

© 2016 Mercer LLC.

526

Global Compensation Planning Report — October Update

NORWAY

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

Professional

Engineering

All levels

Industry Specific

All levels

Finance

Professional

Sales

All levels

Sales

All levels

Sales and Marketing

All levels

Sales and Marketing

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Norway Total Remuneration Survey, July 2016

184

July 1, 2016

Salary Movement Snapshot, September 2015

107

August 1, 2015

Salary Movement Snapshot, September 2016

98

August 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

527

Global Compensation Planning Report — October Update

PORTUGAL

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 1.5%

Inflation, annual average change

2016: 1.0%

2015: 0.5%

2017: 1.1%

Unemployment

2016: 0.7%

2015: 12.4%

2017: 1.1%

2016: 11.2%

2017: 10.7%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

2.0%

1.9%

2.0%

2.0%

1.8%

2.0%

Executive

2.0%

1.8%

2.0%

1.8%

1.8%

2.0%

Management — Nonsales

2.0%

1.8%

2.0%

2.0%

1.8%

2.0%

Professional — Sales

2.0%

1.8%

2.0%

1.8%

1.8%

2.0%

Professional — Nonsales

2.0%

1.8%

2.0%

1.8%

1.8%

2.0%

Para-professional — White collar

2.0%

1.9%

2.0%

1.8%

1.8%

2.0%

Para-professional — Blue collar

2.0%

1.8%

2.0%

1.8%

1.8%

2.0%

© 2016 Mercer LLC.

528

Global Compensation Planning Report — October Update

PORTUGAL

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

8%

5%

5%

Executive

10%

6%

6%

Management — Nonsales

8%

5%

6%

Professional — Sales

8%

5%

6%

Professional — Nonsales

8%

5%

6%

Para-professional — White collar

8%

5%

6%

Para-professional — Blue collar

9%

6%

6%

MANDATORY PAY INCREASE SCHEMES Portugal does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

98%

84%

87%

82%

61%

Median target bonus (% of base pay)

24%

15%

10%

10%

8%

5%

Median maximum bonus (% of base pay)

30%

20%

17%

15%

10%

13%

© 2016 Mercer LLC.

529

Global Compensation Planning Report — October Update

PORTUGAL

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Consulting

All levels

Industry Specific

All levels

Engineering

All levels

Information Technology

All levels

Industry Specific

All levels

Sales

All levels

Information Technology

All levels

Supply and Logistics

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

91

August 1, 2015

Salary Movement Snapshot, September 2016

99

August 1, 2016

Portugal Total Remuneration Survey, April 2016

304

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

530

Global Compensation Planning Report — October Update

SPAIN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 3.2%

Inflation, annual average change

2016: 3.1%

2015: -0.5%

2017: 2.2%

Unemployment

2016: -0.3%

2015: 22.1%

2017: 1.0%

2016: 19.4%

2017: 18.0%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

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 — Nonsales

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%

© 2016 Mercer LLC.

531

Global Compensation Planning Report — October Update

SPAIN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

8%

3%

3%

Executive

9%

3%

3%

Management — Nonsales

8%

3%

3%

Professional — Sales

8%

3%

3%

Professional — Nonsales

8%

3%

3%

Para-professional — White collar

8%

3%

3%

Para-professional — Blue collar

9%

4%

3%

MANDATORY PAY INCREASE SCHEMES Industry-specific collective bargaining agreements usually establish a minimum pay increase indexed to inflation, but not all companies apply them, even within sectors with a specific agreement.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

99%

97%

70%

80%

64%

43%

Median target bonus (% of base pay)

20%

15%

15%

10%

7%

5%

Median maximum bonus (% of base pay)

36%

22%

24%

15%

11%

10%

© 2016 Mercer LLC.

532

Global Compensation Planning Report — October Update

SPAIN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Marketing

All levels

Industry Specific

All levels

Project Engineering

All levels

Research and Development

All levels

Research and Development

All levels

Sales

All levels

Sales

All levels

Sales and Marketing

All levels

Sales and Marketing

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

136

August 1, 2015

Salary Movement Snapshot, September 2016

158

August 1, 2016

Spain Total Remuneration Survey, April 2016

371

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

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SWEDEN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 4.2%

Inflation, annual average change

2016: 3.6%

2015: 0.7%

2017: 2.6%

Unemployment

2016: 1.1%

2015: 7.4%

2017: 1.4%

2016: 6.9%

2017: 6.7%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

Executive

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

Management — Nonsales

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

Professional — Sales

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

Professional — Nonsales

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

Para-professional — White collar

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

Para-professional — Blue collar

2.5%

2.5%

2.5%

2.5%

2.5%

2.5%

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SWEDEN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

2%

3%

3%

Executive

3%

3%

3%

Management — Nonsales

3%

4%

3%

Professional — Sales

2%

3%

3%

Professional — Nonsales

2%

3%

3%

Para-professional — White collar

2%

3%

3%

Para-professional — Blue collar

2%

4%

3%

MANDATORY PAY INCREASE SCHEMES Sweden does not have a mandatory pay increase policy, but collective agreements largely dictate salary increases.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

97%

97%

81%

77%

62%

49%

Median target bonus (% of base pay)

25%

15%

10%

8%

7%

6%

Median maximum bonus (% of base pay)

40%

22%

15%

11%

10%

10%

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SWEDEN

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Industry Specific

All levels

Industry Specific

All levels

Information Technology

All levels

Sales

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

122

August 1, 2015

Sweden Total Remuneration Survey, July 2016

372

July 1, 2016

Salary Movement Snapshot, September 2016

119

August 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

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Global Compensation Planning Report — October Update

SWITZERLAND

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 0.8%

Inflation, annual average change

2016: 1.0%

2015: -1.1%

2017: 1.3%

Unemployment

2016: -0.4%

2015: 3.2%

2017: 0.02%

2016: 3.5%

2017: 3.4%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

1.8%

1.6%

2.0%

1.5%

1.5%

1.8%

Executive

2.0%

1.6%

2.0%

1.7%

1.5%

1.8%

Management — Nonsales

2.0%

1.6%

2.0%

1.6%

1.5%

1.8%

Professional — Sales

1.8%

1.6%

2.0%

1.5%

1.5%

1.8%

Professional — Nonsales

1.8%

1.6%

2.0%

1.5%

1.5%

1.8%

Para-professional — White collar

1.5%

1.7%

2.0%

1.5%

1.5%

1.8%

Para-professional — Blue collar

1.5%

1.6%

2.0%

1.4%

1.5%

1.8%

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SWITZERLAND

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

13%

8%

6%

Executive

16%

12%

9%

Management — Nonsales

14%

8%

7%

Professional — Sales

14%

10%

8%

Professional — Nonsales

14%

9%

8%

Para-professional — White collar

14%

10%

7%

Para-professional — Blue collar

15%

11%

10%

MANDATORY PAY INCREASE SCHEMES Switzerland does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

100%

100%

72%

80%

59%

48%

Median target bonus (% of base pay)

30%

15%

13%

9%

6%

5%

Median maximum bonus (% of base pay)

50%

26%

20%

13%

10%

8%

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Global Compensation Planning Report — October Update

SWITZERLAND

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Industry Specific

All levels

Finance

All levels

Sales

All levels

Marketing

Professional

Sales and Marketing

All levels

Sales

All levels

Sales and Marketing

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

129

August 1, 2015

Salary Movement Snapshot, September 2016

131

August 1, 2016

Switzerland Total Remuneration Survey, April 2016

263

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

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Global Compensation Planning Report — October Update

UNITED KINGDOM

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ECONOMIC TRENDS GDP, INFLATION, AND UNEMPLOYMENT GDP, annual average change 2015: 2.2%

Inflation, annual average change

2016: 1.8%

2015: 0.1%

2017: 1.1%

Unemployment

2016: 0.7%

2015: 5.4%

2017: 2.5%

2016: 5.0%

2017: 5.2%

BASE SALARY INCREASES SALARY INCREASES MEDIAN SALARY INCREASES EXCLUDING ZEROES

MEDIAN SALARY INCREASES INCLUDING ZEROES

2015

2016

2017

2015

2016

2017

All employees

2.8%

2.7%

2.8%

2.7%

2.7%

2.8%

Executive

2.8%

2.7%

2.8%

2.7%

2.6%

2.8%

Management — Nonsales

2.8%

2.7%

2.8%

2.7%

2.6%

2.8%

Professional — Sales

2.8%

2.7%

2.8%

2.7%

2.6%

2.8%

Professional — Nonsales

2.8%

2.7%

2.8%

2.7%

2.6%

2.8%

Para-professional — White collar

2.8%

2.7%

2.8%

2.7%

2.6%

2.8%

Para-professional — Blue collar

2.8%

2.6%

2.8%

2.7%

2.5%

2.8%

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Global Compensation Planning Report — October Update

UNITED KINGDOM

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

COMPANIES REPORTING ZERO SALARY INCREASES 2015

2016

2017

All employees

7%

6%

4%

Executive

10%

6%

5%

Management — Nonsales

7%

7%

4%

Professional — Sales

7%

6%

5%

Professional — Nonsales

7%

7%

5%

Para-professional — White collar

8%

7%

5%

Para-professional — Blue collar

8%

8%

6%

MANDATORY PAY INCREASE SCHEMES The United Kingdom does not have a mandatory pay increase policy.

SHORT-TERM INCENTIVES VARIABLE BONUS BY EMPLOYEE LEVEL EXECUTIVE

MANAGEMENT

PROFESSIONAL

PARA-PROFESSIONAL

NONSALES

SALES

NONSALES

WHITE COLLAR

BLUE COLLAR

Respondents with bonus programme

99%

98%

75%

88%

78%

66%

Median target bonus (% of base pay)

25%

15%

13%

10%

6%

5%

Median maximum bonus (% of base pay)

40%

25%

20%

15%

10%

8%

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UNITED KINGDOM

Data for 2015

Actual

Data for 2016

Actual

Data for 2017

Forecast

ATTRACTING AND RETAINING EMPLOYEES WHICH EMPLOYEES ARE HARDEST TO ATTRACT?

WHICH EMPLOYEES ARE HARDEST TO RETAIN?

JOB FAMILY

LEVEL

JOB FAMILY

LEVEL

Engineering

All levels

Engineering

All levels

Industry Specific

All levels

Finance

All levels

Information Technology

All levels

Industry Specific

All levels

Sales

All levels

Information Technology

All levels

Sales

All levels

SOURCES SOURCE

TOTAL NUMBER OF PARTICIPANTS

DATA EFFECTIVE DATE

Salary Movement Snapshot, September 2015

199

August 1, 2015

Salary Movement Snapshot, September 2016

205

August 1, 2016

United Kingdom Total Remuneration Survey, April 2016

529

April 1, 2016

Not applicable

October 2016

International Monetary Fund, World Economic Outlook Database, October 2016

© 2016 Mercer LLC.

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Global Compensation Planning Report — October Update

ABOUT THIS REPORT

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METHODOLOGY GCPR’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 pay budget forecasts. These data are available for a period of three years overall, as well as for six specific career levels by country.

SALARY INCREASE DATA Salary increase trends for the different employee levels appear as median pay increases, both excluding and including zeroes: EXCLUDING VS INCLUDING ZEROES •• Excluding zeroes represents pay increases of companies that actually do increase pay (excluding pay freezes). •• Including zeroes shows the increases of all companies, including those with pay freezes. The information on the percentage of companies reporting zero salary increases is included to help identify and/or understand any salary freeze trends. SOURCES Salary figures and forecasts are based on Mercer’s Total Remuneration Surveys (TRS), Salary Movement Snapshot (SMS) surveys, and country compensation databases. The primary Mercer regional sources include the Latin America Economic Trends Report and the US and Canada Compensation Planning Surveys, among others. For specific country sources, please reference the individual source tables within each country section.

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METHODOLOGY

SALARY INCREASE TRENDS The Salary Increase Trends section in the report includes consolidated data on salary increases, excluding and including zeroes, to help with country comparisons. Information, where available, on mandatory pay increase schemes is also available in the report.

ECONOMIC TRENDS The Economic Trends section provides information on three key economic indicators: Gross Domestic Product (GDP), Inflation and Unemployment. These consolidated data from the three economic indicators, reported over a three-year period, helps with country comparisons. Economic information was drawn from: the International Monetary Fund (IMF) World Economic Outlook database; the Latin America Economic Trends Report; national central banks; national statistical offices; the International Labour Organisation; Key Indicators of the Labour Market (KILM); the Organisation for Economic Co-operation and Development Dataset: Economic Outlook; and the European Commission and government sources.

SHORT-TERM INCENTIVE DATA For designing a competitive salary and reward programme, short-term incentives play a significant role. The information provided on variable pay by employee level indicates the prevalence of these programmes, as well as target and actual or maximum bonus levels for different countries. Amounts are provided as a percentage of base salary unless otherwise noted. Generally, targets and maximum amounts are valid for the current performance cycle. The performance cycle may differ for each company and may be based on a calendar year, the company's financial year, or another time-frame. The actual bonus amount typically represents the award paid for the previous bonus cycle.

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METHODOLOGY

DATA SOURCES ECONOMIC DATA SOURCES

AMERICAS

ASIA PACIFIC

EUROPE, MIDDLE EAST, AND AFRICA

AMERICAS

ASIA PACIFIC

EUROPE, MIDDLE EAST, AND AFRICA

Economic Trends – Latin America, October 2016 International Labour Organization, Key Indicators of the Labour Market (KILM) 2015, 9th edition, November 2015 International Monetary Fund, World Economic Outlook Database, October 2016

SALARY INCREASE, SHORT-TERM INCENTIVE, AND ATTRACTION/RETENTION DATA SOURCES Asia Pulse Survey, July 2016 2016/2017 Compensation Planning Report, September 2016 Cyprus – •

Survey of Economic Confidence by the University of Cyprus, June 2016

•

Statistics Service, http://www.mof.gov.cy and www cystat.gov.cy

•

Consultant Estimates

Malta – •

The MISCO Salaries and Benefits Report, 2015/2016

•

MISCO Consulting Limited, April 2016

•

Budget Speech, October 2015

Economic Trends – Latin America, October 2016 Salary Movement Snapshot Survey, 2015 and 2016 Total Remuneration Survey, 2015 and 2016

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METHODOLOGY

UPDATE PROCESS GCPR combines regional and local salary increase survey data to offer a global planning tool 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 inbetween updates, if applicable, ensure that GCPR is up-to-date and provides the latest trends. Depending on the survey source and the release date of the local TRS survey, the update cycle for each section can vary across countries. The updates for each section typically are as follows: •• July: Base salary increases and economic trends. •• October: Base salary increases, economic trends, mandatory pay increase schemes, short-term incentives, attracting and retaining employees. IMPORTANT: Availability of data for some markets was limited at the time of release; all markets will be updated in GCPR-Online as data become available. The following markets will be updated in a revised copy of this PDF report available on November 11:

The following markets will be updated in a revised copy of this PDF report available on November 30:

•• India

•• Armenia

•• Israel

•• Bosnia and Herzegovina

•• Namibia

•• Georgia

•• Oman

•• Iraq

•• Yemen

•• Libya

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GLOSSARY CAREER LEVELS: •• Executive: Executives are the senior-most employees in the organisation. These generally include top executives and directors within the organisation, or employees with managerial responsibilities at the top level of a business unit or organisation. Executives are focused on defining strategies for the organisation. •• Management: Management refers to employees with important supervisory and managerial responsibilities, usually the higher levels within a business unit or organisation. Management-level employees focus on managing people and implementing policies and strategies to meet the organisation’s objectives. •• Professional — Sales: Formerly “Technical/Professional,” employees in a technical function or professional — sales role are individual contributors without supervisory responsibility, but may provide coaching/mentoring to less experienced staff. This level of employees typically holds a university degree or full-trade equivalent. •• Professional — Nonsales: Formerly “Technical/Professional,” employees in a technical function or typically in a nonsales professional role are individual contributors without supervisory responsibility, but may provide coaching/mentoring to less-experienced staff. This level of employees typically holds a university degree or full-trade equivalent. •• Para-professional — White collar: Formerly “Clerical/Technician” employees, salaried employees typically in a business support, analyst, administrative, or technical role are employees in skilled, semi-skilled, or unskilled roles without supervisory responsibility. This employee level does not require a university degree but may require formal professional training or certification, and may be paid on an hourly or a salaried basis. •• Para-professional — Blue collar: Formerly “Operations” employees, Para-professional refers to production workers generally in the manufacturing sector. Operations employees may or may not be covered by collective agreements. Para-professionals are employees in skilled, semi-skilled, or unskilled roles without supervisory responsibility. This employee level does not require a university degree but may require formal professional training and certification, and may be paid on an hourly or a salaried basis. GROSS DOMESTIC PRODUCT (GDP): GDP is defined broadly as the output of goods and services produced by labour 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 topercentage change over the previous year’s GDP, at a constant price.

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GLOSSARY INFLATION: Inflation figures refer to the average annual changes in the consumer price index (CPI), which may differ from end-of-year figures. The CPI is an economic factor designed to measure changes over time in the price paid by households for the goods and services they normally purchase for consumption. REAL SALARY INCREASE: An increase in salary after factoring in the effects of inflation on purchasing power. SALARY INCREASES: Mercer collects data on salary increases through detailed surveys to representative companies with operations in each country analysed in this report. This figure includes merit increases, across-the-board increases, mandatory increases, and costof-living adjustments. It does not include promotional increases or any special adjustments to be made for internal equity or external competitiveness reasons. SALARY INCREASES EXCLUDING ZEROES: Excluding zeroes represents salary increases of companies that actually do increase pay (excluding pay freezes). SALARY INCREASES INCLUDING ZEROES: Including zeroes shows the increases of all companies, including those with pay freezes. SHORT-TERM INCENTIVES: Rewards relating to the performance against selected criteria over a period of one year or less, which include performance-related bonuses, sales bonuses, sales commissions, profit-sharing schemes, other bonuses, and exceptional premiums. UNEMPLOYMENT: Generally, data represents the 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 may differ from country-to-country.

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ABOUT MERCER Mercer is a global consulting leader in talent, health, retirement, and investments. Mercer helps clients around the world advance the health, wealth, and performance of their most vital asset — their people. Mercer’s 20,500+ employees are based in more than 40 countries, and we operate in more than 140 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy, and human capital.

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

Copyright 2016 Mercer LLC. All rights reserved.

16-GCPR-OCTOBER