INTERNATIONAL REWARD
Wide variations in salary purchasing power
Senior managers in Hong Kong, Switzerland and Ecuador fare best financially, according to a new international study by Mercer Human Resource Consulting.
Mercer examined the average salaries of senior managers in 50 countries worldwide, and calculated their purchasing power based on tax and social security deductions and the local cost of living. The research shows that senior managers in Hong Kong score highest in the purchasing power league and can buy almost seven times more with their salaries than those in other countries. Switzerland and Ecuador follow in second and third place respectively.
Carlos Mestre, European Partner at Mercer, said: "It's wrong to assume that managers are well-off just because they are well paid, or worse off because they are paid less." The study found that managers in many South American countries -- including Ecuador, Chile and Venezuela -- can buy more with their comparatively low salaries than highly paid managers in the UK, France and Italy. "Senior managers in the EU may earn some of the highest salaries in the world, but they also pay much higher taxes and social charges than those in many developing countries," said Mestre.
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Title: International Geographic Salary Differentials 2003, Mercer Human Resource Consulting.
Methodology: The report looks at the pay of six position levels, from general labourers to senior managers. It compares each country to the 50 other countries included in the report and provides select domestic salary differentials for the United States, Canada and China. The report also presents tax rates and includes a purchasing power ratio analysis that evaluates how many times an employee can purchase an identical basket of goods and services. Senior managers include heads of departments in large companies, heads of functions in smaller companies and upper level professionals.
Availability: More details are available at www.mercerhr.com/surveys or tel: +41 22 869 3000. To read the press release online go to www.mercerhr.com/pressrelease/details.jhtml/dynamic/idContent/1100275 jsessionid=5RUFMXNOMENCKAAJAADQOCA
Mercer Human Resource Consulting is one of the world's leading consulting organisations. It helps organisations "create measurable business results through their people". Mercer has more than 13,000 employees serving clients in some 40 countries worldwide. To find out more visit www.mercerhr.com
Posted 18 July 2003