2024 Egypt Inflation

Spot Survey

June 2024

Reviewed
Not Peer

welcome to brighter
 Mercer is pleased to present the results of the

2024 Egypt Inflation Spot Survey .

The survey was conducted in June 2024 with

228 organizations participating.

This survey summarizes the

market response to the rising
local inflation in Egypt.
Participation list 1/2
• ABB • BOROUGE • EFC • HITACHI ENERGY
• ABBOTT LABORATORIES • BP • EGBANK • HONYEWELL
• ABBVIE • BUHLER • EGYPTIAN ABRASIVES COMPANY • IBM
• ABC BANK • BUNGE • EGYPTIANLNG • IDC
• ABK EGYPT • BYTEDANCE • EGYTRANS • IDEMIA MIDDLE EAST
• ACCELLERON INDUSTRIES • CAPRICORN EGYPT LTD • EHC • ILLUMINA
• ADIDAS EMERGING MARKET • CARGILL • EJADA • IQVIA
• AHLIUNITED BANK • CARTONA • EL SOADAA GROUP • IVL DHUNSERI
• AIR FRANCE KLM • CEMEX • ELABD FOODS • JONES LANG LASALLE
• AIR PRODUCTS • CENTEO • ELI LILLY • JOTUN EGYPT
• AIRBUS LLC EGYPT • CHALHOUB GROUP • ELSEVIER • JTI
• AKZONOBEL • CHEVRON • EMERSON • KELLANOVA
• AL FUTTAIM • CIT VERICASH • EPP • KENVUE
• ALEXBANK • CLEOPATRA HOSPITALS GROUP • ERICSSON • KONE
• ALGORITHM • CMA CGM • ETIHAD AIRWAYS • KRAFTHEINZ
• AMAZON • COPTIC ORPHANS • EVALUESERVE • KUEHNE+NAGEL EGYPT LTD.
• AMGEN • CTI • FEDEX EXPRESS • KYNDRYL
• APACHE COORPORATION • DABUR EGYPT LTD. • FERRERO TRADING • LEONI
• ARAB AFRICAN INTERNATIONAL BANK • DANA GAS • FIELDCORE • LESAFFRE EGYPT
• ARAB OTSUKA NUTRACEUTICALS • DANAHER • FOOTPRINT TRAINING • LEVI STRAUSS AND CO.
• ARASCO • DANONE EGYPT • GB CORP • LG ELECTRONICS EGYPT
• ASTRAZENECA • DEDALUS • GE HEALTHCARE • LIBANO SUISSE TAKAFUL EGYPT
• ATKINSREALIS • DELIVERY HERO TALABAT LLC • GE VERNOVA • LINAH FARMS
• ATLAS COPCO EGYPT • DELL • GIVAUDAN • LIPTON TEAS AND INFUSION
• BAKER HUGHES • DNV • GLOBAL AUTO GROUP • L'OREAL
• BALL CORPORATION • DOEHLER • GOOGLE • LOUIS DREYFUS COMPANY
• BASF EGYPT • DONALDSON EUROPE • GROUPE SEB • LUNDBECK MIDDLE EAST & AFRICA
• BAYER ME • DOW • GRUNDFOS • LYONDELLBASELL
• BD • DRAGON OIL • HENKEL • MAERSK
• BECHTEL INDIA PVT LTD • DREEM MASHREQ FOODS • HERO MEA • MAGRABI
• BEL • DUPONT • HEWLETT PACKARD ENTERPRISE • MAJID AL FUTTAIM
• BIRLA CARBON • ECPC BY CONSOLIS • HIGH RETURN GROUP LLC • MARAKEZ
• BOEHRINGER INGELHEIM • EDRA POWER HOLDINGS • HIKMA PHARMACEUTICALS
Participation list 2/2
• MARS • PEARL SEMICONDUCTORS • SPRINGERNATURE • YODAWY
• MARSH • PEPSICO • SYMRISE EGYPT • ZOETIS
• MASHREQ • PETRONAS EGYPT • SYNGENTA
• MASHREQ FOR BUSINESS • PFIZER PHARMACEUTICALS • SYNTEGON TECHNOLOGY LTD
DEVELOPMENT • PHILIP MORRIS • SYSMEX
• MASTERCARD • PHILIPS ELECTRONICS MIDDLE EAST • TAKEDA PHARMACEUTICAL
• MDP TURKEY AND AFRICA • TENARIS GLOBAL SERVICES S.A.E
• MEDMARK INSURANCE BROKERAGE • PREMIER GROUP OF COMPANIES • TERADATA
• MEDNET EGYPT • PROGRESSIVE BUSINESS SERVICES • TETRA PAK EXPORT FZE
• MEDTRONIC • RECKITT • THE COCA-COLA COMPANY
• MERCEDES-BENZ EGYPT • RED BULL EGYPT • THE WORLD BANK
• MERCK • RED HAT • THE WORLD BANK
• MERCK LTD. EGYPT • ROBERT BOSCH • THOMSON REUTERS
• METHANEX • ROCHE • THYSSENKRUPP UHDE EGYPT
• MICHELIN • RSA • TITAN CEMENT COMPANY
• MIDEA ELECTRICS EGYPT • SANDOZ • TRANE EGYPT
• MINDRAY • SANOFI • TRANE TECHNOLOGIES
• MONDELEZ • SAP • TRANSGLOBE ENERGY CORPORATION
• MSD • SAVENCIA EGYPT • TRAVEL AND LEISURE CO
• NATIONAL BANK OF EGYPT • SC JOHNSON • TUI MUSEMENT
• NEPTUNE ENERGY • SCHINDLER LTE EGYPT • UNILEVER
• NESR • SCHNEIDER ELECTRIC • UPL
• NETWORK INTERNATIONAL • SERVICENOW • VALEO EGYPT
• NISSAN MOTOR EGYPT • SERVIER EGYPT - INDUSTRY • VESUVIUS MID-EAST LTD
• NOKIA EGYPT • SHELF DRILLING • VIATRIS EGYPT
• NOV • SHELL • VODAFONE INTELLIGENT SOLUTIONS
• NOVARTIS • SIEMENS ENERGY • WADI GROUP
• NOVO NORDISK • SINAI CEMENT COMPANY - VICAT • WEATHERFORD OIL TOOL MIDDLE EAST
• NOVONESIS GROUP • WINTERSHALLDEA (OIL & GAS)
• NVENT • SLB • WOOD
• OFI • SOUTHERN PEARL FOR TECHNICAL • WORLEY ENGG
• ORANGE EGYPT CONSULTING • XYLEM
• ORGANON • SPIRAX SARCO EGYPT • YARA AGRI TRADE MISR
Industry sector
Other Manufacturing 18%
Energy 16%
Life Sciences 16%
Consumer Goods 15%
High Tech 15%
Chemicals 9%
Banking/Financial Services 7%
Retail & Wholesale 6%
Services (Non-Financial) 6%
Other Non-Manufacturing 6%
Logistics 3%
Health Care Services 3%
Insurance/Reinsurance 2%
Transportation Equipment 1%
Mining & Metals 0%
N=228
Some organizations indicated more than one answer; therefore, the total may exceed 100%.
5
Survey results
Salary Currency
In which currency do you pay/peg salaries to your Do you have any plans to move to paying/pegging all or part of
Egyptian employees? your basic salaries in USD (or any other foreign currency)
instead of EGP?

Fully paid in EGP 94% Yes, fully 1%

Fully or partially paid in USD or Yes, partially 2%

3%
any other foreign currency

Fully or partially paid in EGP but

No 96%
the amount is pegged to another 3%
foreign currency

N=228 N=214
Currency Cash Allowances Transition
Do you have any plans to introduce/move to paying/pegging any cash allowances in USD (or any other foreign
currency) instead of EGP?

Details regarding the allowance

Yes 3% • Car allowance

• Car allowance is pegged against a fixed EUR based budget
• Car Allowance to be paid in EGP equivalent to USD amount
• Education allowance is pegged in USD
• Travel allowances

No 97%

N=214
Currency Variable Pay Transition
Do you have any plans to move to paying/pegging all or part of your Variable pay (Sales Commission, Bonus, Profit Share,
etc) in USD (or any other foreign currency) instead of EGP?

Details regarding the Variable pay

Yes 3% • Paying Bonus in USD

• Sales commission and the bonus for technical Jobs
• STI and LTI
• Last year target bonus in EUR
• Annual Management Bonus

No 97%

N=214
Rate
What rate of USD (or any other foreign Currency) to EGP do
you apply?

71%
29%

Fixed rate Floating rate

N=7
 What was the regular merit salary increase percentage given in
2024?

2024 Regular Merit Increase 25th Percentile Mean Median 75th Percentile N

Have you already applied 2024 Regular Merit Increase? 15% 20% 20% 25% 202

When did you apply 2024 Regular Merit Increase?

Yes 89%
Jan. Feb. March. April. May. June. N

36% 4% 19% 35% 1% 3% 203

What is the projected/budgeted merit salary increase percentage for

2024?

25th Percentile Mean Median 75th Percentile N

No 11%

9% 18% 20% 25% 24

When do you plan to apply 2024 Regular Merit Increase?

July Aug. Sep. Oct. Nov. Dec. N

N=228
68% 4% 4% 24% 0% 0% 25
Actions applied on top of the regular merit increase in 2024

In 2024, did your organization take any action on top of the Number of actions taken in 2024
regular merit increase?

1 68%
Yes, already applied 48%

2 18%

Actions decided but not yet

25%
Implemented 3 7%

4 6%
No, not planning any actions 28%

5 and more actions 1%

N=228 N=109
Actions applied on top of the regular merit increase in 2024
In 2024, which of the following actions did your organization take on top of the Regular merit increase?

Special off-cycle salary increase 44%

Increase in transportation
22%
allowance

Providing lump sum amount 19%

Other actions:
Additional allowance (eg.COLA) 18%
• Additional allowance for frontline and staff levels
• Bonus increase
Increase in car allowance 16% • Include dependents under medical policy for all employees
• Increase Housing allowance Increase in Annual Incentive
• Increase in variable
• Inflation increase
Increase in Meal Allowance 11% • Monthly supplemental payments
• Provided Vouchers
• Salary increase for selected employees
Increase in fuel allowance 6% • Special off cycle salary increases for one employee

Increase in Telecommunications
3%
allowance

Other 15%

N=109
 Actions applied on top of the regular merit increase in 2024
Action in 2024 What number of months/percentage? In which month was it implemented?
25th 75th
Mean Median N Jan. Feb. Mar. Apr. May. June. N
Percentile Percentile

Providing lump sum amount 16

1.0 2.7 1.5 3.0 30% 15% 25% 20% 5% 5% 20
(the number of monthly base salaries)

Additional allowance (eg.COLA) 15% 21% 15% 25% 19 26% 16% 5% 26% 21% 5% 19

Special off-cycle salary increase 13% 19% 15% 24% 48 21% 8% 8% 23% 25% 15% 48

Increase in transportation
15% 33% 20% 30% 23 29% 4% 8% 17% 13% 29% 24
allowance

Increase in car allowance 20% 45% 35% 60% 17 18% 6% 6% 18% 18% 35% 17

Increase in fuel allowance 13% 21% 20% 29% 6 0% 33% 0% 17% 33% 17% 6

Increase in meal allowance 18% 48% 25% 100.% 10 42% 0% 0% 17% 17% 25% 12

Increase in telecommunications
-- 62% -- -- 3 33% 0% 0% 0% 33% 33% 3
allowance
Actions planned for 2024
In 2024, which of the following actions does your organization plan to take?

Special off-cycle salary increase 69%

Increase in transportation
27%
allowance

Increase in car allowance 22%

Additional allowance (eg.COLA) 13%

Increase in fuel allowance 13%

Providing lump sum amount 11%

Other actions:
Increase in Meal Allowance 9%

Increase in Telecommunications • Annual sports memberships

7% • Increase end of year bonus
allowance • Increase Housing Allowance
• Integrate part of COLA in Basic Salary
Other 11%

N=55
 Actions planned for 2024
Action in 2024 What number of months/percentage? In which month will it be implemented?
25th 75th
Mean Median N Jul. Aug. Sep. Oct. Nov. Dec. N
Percentile Percentile

Providing lump sum amount 1.0 1.5 1.0 2.0

(the number of monthly base salaries)
5 20% 40% 20% 20% 0% 0% 5

Additional allowance (eg.COLA) 10% 24% 10% 15% 7 86% 0% 0% 14% 0% 0% 7

Special off-cycle salary increase 10% 14% 13% 19% 36 51% 19% 14% 14% 3% 0% 37

Increase in transportation
15% 34% 30% 40% 15 60% 13% 7% 7% 7% 7% 15
allowance

Increase in car allowance 25% 37% 40% 50% 11 67% 17% 0% 17% 0% 0% 12

Increase in fuel allowance 10% 25% 25% 35% 6 71% 0% 14% 14% 0% 0% 7

Increase in meal allowance -- 41% -- -- 3 60% 40% 0% 0% 0% 0% 5

Increase in telecommunications
-- 21% 23% -- 4 75% 0% 0% 25% 0% 0% 4
allowance
Total Staff Turnover Rate
In 2023, what was your organization total staff Turnover rate?

25th Percentile Mean Median 75th Percentile N

6% 12% 10% 15% 194

What is your organization staff Turnover rate in 2024 Year to date?

25th Percentile Mean Median 75th Percentile N

3% 8% 6% 10% 186
Labor cost
In 2023, what is your labor cost to revenue ratio?

25th Percentile Mean Median 75th Percentile N

8% 22% 18% 30% 171

 Survey usage
Data confidentiality standards
Human Resource professionals who deal regularly with surveys are aware of the
To ensure the confidentiality of all data, a minimum variance that may exist in survey data. Data may fluctuate slightly from year to year due
number of observations is required in order for to changes in the participant base. It is also important to note that within a sample, a
statistics to be displayed. significant amount of data may be reported by one organization. It is also possible for
data to change drastically from year to year due to industry-related factors and
economic conditions.
▪ Four organizations must report at least four Mercer is providing this survey information to its clients to permit them to make
observations for a variable in order for the independent decisions regarding salaries and benefits. Because the exchange of salary
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are required to display 25th and 75th percentiles. The information and data contained in this report are for information purposes only and
▪ In single-answer questions the total may not equal are not intended nor implied to be a substitute for professional advice. In no event will
100% due to rounding. Mercer be liable to you or to any third party for any decision made or action taken in
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▪ In multiple-answers questions organizations may contained or provided herein.
indicate more than one option, therefore the total
may exceed 100%.
▪ A double hyphen i.e., “--” has been indicated where
there are insufficient data for analysis. If you have questions
If you have questions regarding the survey or the report,
contact us at:

Seif.Nahnoush@mercer.com
Hady.Nassef@mercer.com
Mahmoud.Farid@mercer.com
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