2006 Budgeted Base Salary Increases: High in India, Low in Belgium

2006 Budgeted Base Salary Increases:
High in India, Low in Belgium
August 2006

This month, we highlight 2006 budgets for base salary increases for employees of technology companies across 24 countries. Most of the budgeted increases range from two to seven percent with differences emerging by employee type and country.

Results worth noting:

Tech companies budget the highest base salary increases for employees in India. Average 2006 budgeted increases in India range from 5.8 percent for executives to 7.3 percent for sales employees.
Companies report the lowest budgeted base salary increases for employees in Belgium, with the exception of executive employees. Average budgeted increases for executives ran lower in Japan.
Regardless of the country, budgeted base salary increases remain frozen more often for executive and sales employees than for other employee types. Companies often adjust total compensation levels for executive and sales employees through changes in variable pay rather than base pay.

Tables 1 through 3 present the data on 2006 budgeted base salary increases for 24 countries within three regions of the world.

Overall, median budgeted base salary increases fall within a relatively narrow range of two to four percent. Keep in mind that key employees and top performers may receive adjustments higher than these budgeted numbers, while poor performers often receive lower or no adjustment in base pay. In addition, actual market shifts in base pay rates may be lower or higher than the numbers budgeted by companies to accommodate market changes.

Table 1: Americas - 2006 Budgeted Base Salary Increases
Country	Average	Percentiles			Percent of Companies Reporting 0% Increases
Country	Average	25th	50th	75th	Percent of Companies Reporting 0% Increases
Executive Employees - Americas
Argentina	4.6%	3.1%	3.5%	6.9%	17%
Brazil	4.7%	3.4%	3.8%	5.6%	0%
Canada	3.0%	1.3%	3.5%	4.0%	26%
Mexico	4.4%	3.5%	4.5%	5.9%	10%
United States	3.9%	3.0%	3.8%	4.5%	16%
Sales Employees - Americas
Argentina	5.1%	3.1%	5.1%	7.7%	17%
Brazil	3.8%	3.0%	3.5%	5.0%	18%
Canada	3.0%	2.8%	3.5%	4.0%	21%
Mexico	3.7%	3.0%	3.8%	5.1%	17%
United States	3.2%	2.0%	3.5%	4.0%	21%
Operations Employees - Americas
Argentina	4.5%	3.0%	3.3%	6.9%	17%
Brazil	4.1%	3.0%	3.8%	5.0%	8%
Canada	3.2%	3.0%	3.5%	4.0%	11%
Mexico	3.8%	3.0%	3.8%	5.1%	8%
United States	3.9%	3.0%	4.0%	4.0%	7%
Technical Employees - Americas
Argentina	4.5%	3.0%	3.3%	6.9%	17%
Brazil	4.1%	3.0%	3.8%	5.0%	8%
Canada	3.3%	3.0%	3.5%	4.0%	10%
Mexico	3.6%	3.0%	3.8%	5.1%	17%
United States	4.1%	3.0%	4.0%	4.0%	7%

Table 2: Asia-Pacific - 2006 Budgeted Base Salary Increases
Country	Average	Percentiles			Percent of Companies Reporting 0% Increases
Country	Average	25th	50th	75th	Percent of Companies Reporting 0% Increases
Executive Employees - Asia-Pacific
Australia	3.0%	1.0%	3.5%	4.0%	28%
China	2.7%	0.0%	3.5%	4.0%	38%
Hong Kong	2.3%	0.0%	3.0%	3.5%	38%
India	5.8%	1.9%	3.3%	7.4%	25%
Japan	2.1%	0.0%	2.5%	3.5%	40%
Singapore	3.0%	3.0%	3.5%	3.5%	13%
South Korea	3.3%	3.1%	3.5%	4.4%	17%
Sales Employees - Asia-Pacific
Australia	3.4%	3.0%	4.0%	4.0%	18%
China	3.8%	1.0%	4.0%	6.0%	29%
Hong Kong	2.6%	1.0%	3.0%	3.9%	29%
India	7.3%	3.0%	5.7%	10.0%	7%
Japan	2.3%	0.0%	3.0%	3.5%	29%
Singapore	3.0%	3.0%	3.5%	3.7%	13%
South Korea	3.9%	3.0%	3.0%	4.9%	0%
Operations Employees - Asia-Pacific
Australia	3.3%	3.0%	4.0%	4.0%	19%
China	4.0%	1.0%	4.0%	6.4%	29%
Hong Kong	2.6%	1.5%	3.0%	3.6%	25%
India	7.1%	3.0%	5.7%	10.0%	13%
Japan	2.5%	1.9%	3.0%	3.6%	25%
Singapore	3.1%	3.0%	3.0%	3.8%	7%
South Korea	3.2%	3.0%	3.0%	4.4%	14%
Technical Employees - Asia-Pacific
Australia	3.3%	3.0%	4.0%	4.0%	19%
China	4.3%	3.0%	4.0%	6.4%	21%
Hong Kong	2.6%	1.5%	3.0%	3.6%	25%
India	7.1%	3.0%	5.7%	10.0%	13%
Japan	2.5%	1.9%	3.0%	3.6%	25%
Singapore	3.1%	3.0%	3.0%	3.8%	7%
South Korea	3.2%	3.0%	3.0%	4.4%	14%

Table 3: Europe - 2006 Budgeted Base Salary Increases
Country	Average	Percentiles			Percent of Companies Reporting 0% Increases
Country	Average	25th	50th	75th	Percent of Companies Reporting 0% Increases
Executive Employees - Europe
Belgium	2.4%	1.9%	3.0%	3.5%	22%
Denmark	2.7%	2.7%	3.3%	3.5%	17%
France	2.3%	0.0%	3.0%	3.9%	35%
Germany	2.6%	0.0%	3.0%	3.9%	33%
Ireland	2.5%	0.0%	3.2%	4.0%	33%
Italy	2.3%	0.0%	2.5%	3.5%	31%
Netherlands	2.2%	0.0%	3.0%	3.5%	33%
Norway	2.5%	2.0%	3.3%	3.5%	25%
Spain	2.9%	2.3%	3.4%	3.9%	25%
Sweden	2.2%	0.0%	3.0%	3.5%	38%
Switzerland	2.6%	2.4%	3.0%	3.5%	20%
United Kingdom	2.9%	1.8%	3.5%	4.0%	24%
Sales Employees - Europe
Belgium	1.9%	0.0%	2.0%	3.0%	33%
Denmark	2.7%	2.7%	3.0%	3.4%	17%
France	2.9%	3.0%	3.2%	4.0%	20%
Germany	2.7%	1.9%	3.0%	3.6%	25%
Ireland	3.4%	3.2%	3.8%	4.0%	17%
Italy	2.6%	2.5%	3.0%	3.8%	20%
Netherlands	2.8%	3.0%	3.0%	3.5%	12%
Norway	2.5%	2.0%	3.1%	3.6%	25%
Spain	2.9%	3.0%	3.2%	3.8%	23%
Sweden	3.1%	2.8%	3.5%	3.5%	8%
Switzerland	2.8%	2.5%	3.0%	3.3%	9%
United Kingdom	3.0%	3.0%	3.5%	4.0%	19%
Operations Employees - Europe
Belgium	1.9%	1.0%	2.0%	3.0%	29%
Denmark	2.2%	1.8%	2.6%	2.9%	17%
France	2.7%	2.8%	3.2%	4.0%	22%
Germany	3.0%	2.7%	3.0%	4.0%	15%
Ireland	2.6%	1.1%	3.4%	4.0%	25%
Italy	2.5%	2.5%	3.0%	4.0%	23%
Netherlands	2.5%	2.0%	3.0%	3.5%	18%
Norway	2.6%	2.3%	2.8%	3.6%	13%
Spain	2.7%	2.3%	3.1%	3.6%	25%
Sweden	2.9%	2.5%	3.0%	3.5%	8%
Switzerland	2.8%	2.5%	3.0%	3.4%	10%
United Kingdom	3.0%	3.0%	3.5%	4.0%	15%
Technical Employees - Europe
Belgium	1.9%	1.0%	2.0%	3.0%	29%
Denmark	2.2%	1.8%	2.6%	2.9%	17%
France	2.7%	2.8%	3.2%	4.0%	22%
Germany	3.0%	2.7%	3.0%	4.0%	15%
Ireland	2.6%	1.1%	3.4%	4.0%	25%
Italy	2.5%	2.5%	3.0%	4.0%	23%
Netherlands	2.5%	2.0%	3.0%	3.5%	18%
Norway	2.6%	2.3%	2.8%	3.6%	13%
Spain	3.1%	3.0%	3.3%	4.0%	17%
Sweden	2.9%	2.5%	3.0%	3.5%	7%
Switzerland	2.8%	2.5%	3.0%	3.4%	10%
United Kingdom	3.1%	3.0%	3.5%	4.0%	15%

- Will Parsons

Data source: The Culpepper Compensation Survey database as of August 1, 2006. Data presented is based on base salary budgets from over 300 technology and life science companies with employees located worldwide.

2006 Budgeted Base Salary Increases: High in India, Low in Belgium August 2006

2006 Budgeted Base Salary Increases:
High in India, Low in Belgium
August 2006