In 2020, despite the difficult situation, companies raised wages by an average of 4%
PayWell 2020 Remuneration Study
Is your employee remuneration competitive?
The PayWell Remuneration Study analyses the overall remuneration strategy at companies and current trends in employee benefits.
In 2020, the study covered 298 companies from 15 sectors,
with 516 job positions analysed.
“During PwC online workshops, most clients confirmed that there were no significant changes to their remuneration structure in 2020. For most of last year, HR departments were primarily busy with operating activities focused on adapting to the current situation from the security point of view, and to transforming HR processes due to changes in the organization of work.”
Ľudmila Guerin, Manager, PwC Slovakia
Wages of slovak companies according to PayWell 2020
Actual wage raise in 2020: 4%, which is almost in line with the original plan (4.1%)
Planned wage raise for 2021: 3.3%
Compared to the previous year (up to the end of April 2020), 30% less clients reported planned wage and salary increases for 2021. The reason was mainly the uncertain economic situation. In additional inquiries made during a survey conducted in autumn 2020, clients stated values which were almost in line with our predictions in the benefit and remuneration report.
Selected statistics
Almost 70% of companies are interested in remunerating their employees at the market median level.
The average variable wage component for specialists amounts to 23%.
13th and 14th salaries are paid in the automotive, mechanical engineering, production, and energy sectors and are still a significant part of remuneration components. Depending on the policy of individual companies, these wages are guaranteed or non-guaranteed.
Interesting facts from on-line workshops held in autumn 2020:
- In 2020, almost 90% of clients paid a variable wage component, and more than one third of clients expect to also pay it in 2021.
- More than one third of clients redirected funds not used for employee benefits to cover company expenses.
About PayWell 2020
PayWell is a remuneration study and remuneration planning tool providing an up-to-date view of remuneration in Slovakia, including HR policy and strategy information and trends. The PayWell survey has been undertaken by HRS at PwC for 29 years in Slovakia.
The basis for the evaluation of remuneration data and information relating to remuneration policy, social policy, and employee benefits in 2020 is taken from an extensive diverse data sample from 298 companies in 15 business sectors. There is a higher demand from employers for information about the labour market and projections of its future development, as they constitute an important basis for making decisions and preparing future business strategies, including investments into growth and product portfolios.
* Guaranteed salary = base salary + all guaranteed benefits independent of the individual’s or company’s performance.
** Methodology or guarantee of an unbiased comparison: indexes are calculated based on a standard package of job positions which includes only those positions that are typically present in all firms regardless of the firm’s purpose or the sector in which it operates.
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