Private sector gross wages increase
6,53%
implemented in 2020
4,85%
increase expected in 2021
The wage increases in the first half of this year were based on good performance in 2019. The trend seems to be continuing, but not at the same pace, as most companies are preparing more conservative budgets for 2021 due to the global economic uncertainty generated by the current pandemic.
In the current situation, organisations need to remain sustainable in the long term, so cost reductions are inevitable. The adjustments differ depending on the industry, the market position and each company’s resilience, but it is increasingly likely that the economic situation will remain difficult next year.
The sectors with the highest salary increases
Of the industries represented in the study, the retail sector recorded the highest average wage growth, of 9.87%, followed by banking with 7.39%.
The pharmaceutical and Industrial Products sectors recorded a below survey-average increase of 4.17% and 3.8%, respectively.
Staff categories
The trend of increasing wages amongst unskilled or low-skilled personnel (workers, operators) continues, as an average of 6.77%, but even that is a reduction from last year’s growth rate in excess of 10%.
In 2020, management position salaries increased by 6.61% while administrative staff, technicians and employees with little experience saw their salaries rise by 6.2%.
Measures for COVID-19 pandemic outbreak
To reduce costs since the COVID-19 pandemic outbreak, 42% of the companies surveyed implemented work from home policies, 23% worked in shifts, 4% reduced working time and 4% implemented furloughs.
We will certainly see the continuation of these trends in the future and even accelerated by the pandemic: digital transformation, the development of skills for the future labour market, working-time flexibility, versatility of professions/ positions and, last but not least, for the good of the people.
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About PayWell 2020
PwC conducted the survey on 66 private companies from the Banking, Pharmaceuticals, Retail and Industrial Products sectors. Participation in the survey implies provision of information on salary levels and compensation and benefits policies currently in place within the surveyed organisations.
The report is available on PwC's PayWell platform. Here, besides the benchmark data, you can also access executive summary reports, market insights reports including macro-economic and labour force indicators, remuneration trends and updated HR Barometer reports.
PayWell 2020 brings 3 new dashboards that aggregate information on multiple levels (sectors, functions, departments, positions, regions, cities, grade levels) and offer more insights to the data.
Trends Dashboard offers an overview into the evolution of salaries over the last 3 years.
Category Dashboard presents an insightful analysis of salary data depending on demographic variables such as Gender, Generation, Performance and Tenure.
Additionally, you can access the Market Positioning Dashboard that allows you to explore in multiple graphic views your company's market benchmark positioning.
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