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REVIEW OF LABOUR MARKET2014_eng

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REVIEW OF LABOUR MARKET2014_eng

  1. 1. Lviv, 79005 Petrushevych sq 3, office 311 Phone./Fax: +380 32 297 13 90, 297 19 03 www.lvivconsult.com info@lvivconsult.com PAY SURVEY OF MANUFACTURING COMPANIES, WESTERN REGION OF UKRAINE – December, 2014 Survey data Participants: manufacturing companies operating in Lviv, Volyn, Zakarpattya and Ivano-Frankivsk regions of Western Ukraine  The survey was conducted in the period November, 15th – December, 8th 2014  Pay data is actual as of November 1, 2014.  Employers reported salaries in UAH, gross.  Salaries are paid and calculated on a monthly basis.  Companies are responsible for the following taxes on labor: – Corporate labor tax: escalating rate up to 38% tax on gross salary – Personal deductions on salaries : • 15% income tax • 3,6 % additional social security tax • 1,5% military tax  In the report Monthly Basis Salary, Projected Annual Basic Salary for 2015 and Projected Target Total Compensation for 2015 are presented as gross values (before taxes and deductions) in the form of statistical indicators: Median, Average, 1 and 3 Quartiles, Adjusted Minimum and Maximum.  Seventeen companies operational in Western Ukraine for more than 5 years participated in the Pay Survey.  Over 50% of participants have head count up to 500 employees and 35% of participants employ from 500 to 4500 employees.  95% of the Survey participants are companies with foreign capital.
  2. 2. Lviv, 79005 Petrushevych sq 3, office 311 Phone./Fax: +380 32 297 13 90, 297 19 03 www.lvivconsult.com info@lvivconsult.com 29% 24%18% 12% 18% Assembly operations Light industry Metal Working / Wood Working Food Processing Others : Construction materials and packaging Job matching Findings: Headcount change in the last quarter of 2014 - 2015 Findings: Merit increase: IV. 2014 - 2015 Participants were asked to match their positions with descriptions of 34 jobs grouped into 7 job families: Manufacturing & Engineering Human Resources Manual Workers Finance & Accounting Quality Control Sales Logistics & Purchasing Will increase 25 % Will decrease 19 % Will remain at the same level 56 % In comparison with the previous years the number of companies that plan head count increase remained the same. Companies planning to reduce capacities increased by 15%  25% of companies do no plan a merit increase in 2015; 75% of companies will have a merit increase in 2015, 50% will review salaries in January 2015.  Average base salaries in January 2015 will increase by 2%-8% compared to the IV quarter 2014.
  3. 3. Lviv, 79005 Petrushevych sq 3, office 311 Phone./Fax: +380 32 297 13 90, 297 19 03 www.lvivconsult.com info@lvivconsult.com Findings: Reasons for merit increase in 2015 Findings: Bonus payment Findings: Most popular benefits among surveyed companies Findings: Average Monthly Basic Salary (median to average) for standard jobs * Official exchange rate 8,06 uahЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙЙ /$ The unstable economic situation calls companies to retain valuable, efficient employees. The reasons for merit increase are the following  Employee’s individual achievements 76% of responses  Official inflation rate 70%  Pay policies of other companies 56% For the first time in several years 40% of companies indicated changing currency exchange rates as a reason for merit increase.  80% of companies pay bonuses and other cash payments  80% of companies pay monthly bonuses to manual workers and middle managers and annual bonuses to top managers.  The variable part of compensation in 2015 will on average constitute 30%-40% of total compensation for production engineers and manual workers and not more than 15%-30% - for specialists and managers in other non-production departments.  75% of companies offer a compensation package to employees.  Most popular benefits remain the same: subsidized mobile connection to top and middle management, professional training and foreign language courses to all levels of employees  The number of participants that provide transportation and meals increased by 25%; additional paid vacations to employees at all levels became more popular compared to the previous survey.  25% of companies added industrial accident insurance to the compensation package. Only 20% of companies offer pension plans. 100% of companies link their pay systems to UAH, 24% to Euro only for top management positions. Head of production, 3 years of experience 19700-20100 uah $1313-1340 General accounting specialist, 2 years of experience 4030-4100 uah $269-273 Engineer, 2-3 years of experience 5800-6000 uah $386-400 Mechanical engineer, 2 years of experience 3220-3500 uah $214-233 Non-skilled labor/Operator 2265-2350 uah $151–157 Compared to year 2012 average monthly basic salary in UAH of Production manager increased by 25%-30%, Engineer and Accounting Specialist salaries increased by 8%- 15%. Qualified workers are paid 30% more, basic salary of non-qualified manual workers went up only by 5-6%. *Official exchange rate: $1= 15 uah.
  4. 4. Lviv, 79005 Petrushevych sq 3, office 311 Phone./Fax: +380 32 297 13 90, 297 19 03 www.lvivconsult.com info@lvivconsult.com Comparison of average monthly salaries (median) (in $) for top management in Western region of Ukraine 0 500 1000 1500 2000 2500 3000 CFO Chief Accountant Operation manager Head of HR Head of Sales Head of Logistic 2010 (7,9)* 2011 (8,0)* 2012 (8,06)* 2014 (15)* * Official exchange rate In case you have questions or need additional information on 2014 Pay Survey of Manufacturing Companies in Western Ukraine, please contact Oksana Abramenko. +38 032 297 19 03 +38 032 297 13 90 +38 050 370 13 16 oksana.abramenko@lvivconsult.com

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