For the first time since the pound flotation, Egyptians will witness a 6.6% real-salary increase, which is higher than other countries in the region. This will support disposable income growth in 2020, according to Logic Polls’s latest survey results.
Real salary increase is the salary increase of an employee in a given year, minus the inflation experienced in the same year.
Logic Polls surveyed a wide range of Egyptian companies aiming to establish a
national reference point with regards to different business and management topics.
In its fourth edition, Logic polls surveyed 36 CEOs and Chairpersons across different sectors about their business practices.
As Egypt is projected to be one of the top countries with the highest salary increase, logic polls assured that companies need to keep an eye on inflation; if it flattens in the coming years, they need to consider scrapping annual raise and turning to bonuses instead.
Logic Poll reveals that salary-increase budgets will achieve an 11% growth on average across most industries, while according to the Korn Ferry 2020 Salary Forecast, salaries are expected to increase by 13.5%.
As budgeting season approaches, most companies are planning their salary increase budgets. Hence, this poll helps employers analyse their own numbers against industry standards to improve their payroll efficiency.
Across industries, management salaries constitute around 18-23% on average of total payroll, except education and services industries in which management salaries constitute 10% and 28%, respectively, according to Logic Polls.
With regards to the percentage of annual revenue payroll, Logic Polls explained that the right percentage of revenue that should go to payroll vary widely among industries. Yet, senior executives and CEOs need to keep an eye on this key performance indicator to figure out ideal percentages by taking local and global industry benchmarks into account.