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 barometer has seen little to no change to the proportion of increases in December compared to last month. Below-market increases(contraction) have remained at 33%, at-market increases (stable) rose slightly to 35%, whilst above-market increases (expansion) lowered to 32%.
The industry breakdown also shows very little movement overall for December. The biggest mover this month has been the retail industry, reporting above-market pay increases at 62% which is an increase of 16.5 percentage points compared to November's figure. The pharmaceutical, manufacturing, and mining sectors have all reported slightly higher at-market pay increases, with percentage increases of 1.8, 1.5, and 1.8 respectively. There were no industries this month which saw an increased proportion of below-market pay increases.
Source: Mercer's remuneration database