Remuneration Trends and Insights

Pay Increase Barometer

Mercer’s Pay Increase Barometer measures the extent to which salaries are passed on at, below or above market rates in the past nine months.

 

 

September 2020

 

Mercer’s pay increase barometer measures the extent to which salaries are passed on at, below or above market rates in the past nine months. The terms ‘contraction’, ‘stable’ and ‘expansion’ are used to define the proportion of individuals that in the past nine months have received below, at or above market rates, respectively.

 

Mercer’s remuneration database operates on a rolling basis, with organisations providing remuneration data submissions throughout the year. As a result, each month we share the overall barometer findings in addition to industry-specific results for those sectors for which reportable data is available. 

 

The September pay increase barometer shows 36% of incumbents in the sample received above-market (expansion) movements when compared to Mercer's reported overall median same incumbent employment cost movement.

 

For an incumbent to have seen an at-market (stable) pay movement, they would have received an increase of +/- 1% above or below Mercer’s overall median employment cost movement. The barometer for September shows 38% of incumbents have received a remuneration increase within that range.

 

The26% of individuals that received a below-market (contraction) pay increase saw an increase of greater than 1% below Mercer’s overall median employment cost movement. 

 

When broken down by reportable industry, the highest proportion of above-market pay increases (85%) were awarded by retail organisations. The education and research industry passed the highest proportion of at-market pay increases, reporting 55%, while health care organisations passed the highest proportion of below-market pay increases with 75% of incumbents reporting contraction.  

 


 

Disclaimer: While every care has been taken to ensure the accuracy of the information, no warranty is given in respect thereof.


 

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