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 small changes to the proportion of increases in January compared to December 2018. Below-market increases(contraction) have increased to 34%, at-market increases (stable) decreased to 33%, whilst above-market increases (expansion) increased to 33%.
The industry breakdown also shows a few notable movements for January. The biggest mover this month has been the utilities industry, reporting an increase of above-market pay increases of 20.8 percentage points. In contrast to this we have seen the chemical, education and research, FMCG, high-tech, pharmaceutical and mining industries report an increased proportion of below-market increase.
Source: Mercer's remuneration database