The2014 Bayt.com MENA Salary Survey, conducted by Bayt.com, the Middle East’s number one job site, and leading market research agency, YouGov, has revealed that expectations of a pay rise in2014 are high in Egypt, though28% of professionals surveyed confirm they didn’t receive a pay rise in2013.
Salary: Current and Expectations
Across the MENA region,67% of professionals surveyed indicate they receive a basic salary plus benefits, such as housing allowance, transport, children’s education and more; in Egypt, this figure drops to36%. For two in10 respondents who receive a basic salary along with other benefits, the basic salary consists of51-75% of their monthly salary.25% state that they also receive commission on top of their basic salary and benefits. The preferred pay structure in Egypt is a100% fixed-pay structure (favoured by46% of respondents in Egypt).
A large proportion of Egypt is underwhelmed by their income, with42% claiming to be dissatisfied with their pay, compared to just3% who are highly satisfied with what they receive.35% believe that men and women receive equal pay for doing the same work. A significant seven out of10 (67%) professionals surveyed believe that the salary they receive is less than what other companies in their industry pay.
In2013,28% of Egypt respondents say they did not receive a salary raise. For those who did receive a raise,55% were discontent with what they received while44% were satisfied. Two in10 Egypt respondents (23%) do not expect to receive an increase in2014, though44% anticipate receiving a pay rise of up to15%.
In Egypt, the most common benefits received by employees are personal medical insurance, transportation allowance and company-paid telecoms. Bonuses are received by32% of respondents. For33% of Egypt respondents, foregoing part of their salary to work flexible hours is something they would consider.
According to57% of Egypt respondents, their company does not pay for any overtime they do. Companies that do pay for extra office hours, for the most part, pay a normal hourly rate, though32% pay time and a half.41% of companies in Egypt pay employees for time spent doing civil service.
Loyalty
Five in10 Egypt respondents state that loyalty to their company is not based on the salary they receive. Rather, they consider that their loyalty is based on their line manager (43%), opportunities for long-term career advancement (40%) and senior management (37%).
End of Service Benefits
In Egypt,23% of respondents receive an end-of-service gratuity, while18% receive a pension upon retirement.50%, however, receive neither, though41% of those who do not currently receive a pension state that they are interested in a pension plan to which they would contribute a percentage of their basic salary, in addition to company contributions.
Insurance
The majority of Egypt respondents (63%) have access to medical insurance for themselves through their company, and21% have access to insurance for their dependents, too. For the most part, companies are responsible for payment on medical insurance claims – both for personal and dependents. Although, a further two fifths of respondents share responsibility of medical insurance payments with their employer. Insurance plans are active from the first day of hire according to24% of respondents in Egypt.
Cost of Living, Quality of Living, and Savings
According to89% of Egypt respondents, the cost of living increased in2013, with45% claiming it rose by more than20%. Increases have mostly affected the cost of food & beverages, utilities and entertainment –89% of respondents expect that it will continue to rise throughout the year. The rising cost of living has also limited respondents’ ability to save;46% in Egypt claim to have saved nothing from their monthly salary.
Despite this,37% of Egypt respondents believe that they are better off now, in terms of quality of life, than they are in comparison to their generational peers in their country of residence.
52% of Egypt respondents intend to look for a better job in the same industry in the next12 months, and57% believe that salaries in Egypt are on the rise. This is considered to be due to inflation and the rising cost of living, as well as opportunity and economic growth, and pay rises in the public sector. Factors observed by Egypt respondents which are inhibiting salary increases include poor economy, poor corporate performance/decreased profitability, and employer-friendly laws.18% of respondents believe there is an excess of talent in Egypt.
“The results of the2014 Bayt.com MENA Salary Survey suggest that salaries are not consistently keeping pace with the rising cost of living in Egypt. This seems to be a general trend across the MENA region that companies must address if they want to win today’s increasingly intense war for talent,” said Suhail Masri, VP of Sales, Bayt.com. “The Bayt.com MENA Salary Survey is an annual study that reveals the levels of satisfaction with salaries across the Middle East and North African region. This information is vital for employers and job seekers in the region alike; it helps them benchmark and anticipate their unique salary situations and make informed, empowered work and life decisions.”
“Overall, employees across the MENA region seem rather dissatisfied with their salary – with a significant minority unable to save anything of their wages. Undoubtedly, employees feel short changed, and an increase in cost of living and a presumption other employers pay more may mean we see significant churn over the next year as employers struggle to match employees expectations,” said Sundip Chahal, CEO of YouGov MENA.
Financial Investments and Expenses
Just13% of Egypt respondents make regular investments, i.e. at least once a month, with the most popular investment product being respondents’ own business.
The majority (73%) of respondents in Egypt eat out at least a few times a month, with21% choosing to eat out a few times a week and a further29% eating out on a daily basis. Travel is considered to be the top monthly expense by36%, followed by dining out (27%) and entertainment (13%). Holidays taken by Egypt respondents in the last12 months have involved travel to regional destinations (9%), though50% have had vacations within Egypt.37% of respondents have not been on holiday in the past12 months.
About the Respondents
22% of Egypt respondents have worked within their current career path for less than3 years;24% have worked in it for3-6 years, while24% have remained in the same career for7-10 years. Four in10 (37%) have been with their current employer for2-5 years, compared to26% who have been with them for1 year or less. On average, most respondents spend no more than3 years with an employer.
The majority of respondents (35%) have up to five people reporting to them, either directly or indirectly, and consider themselves to be at a ‘fairly senior’ level, or midway in terms of their seniority (67%).
Data for the2014 Bayt.com MENA Salary Survey was collected online from April20-28,2014. Results are based on a sample of9,537 respondents. Countries that participated are the UAE, KSA, Kuwait, Oman, Qatar, Bahrain, Lebanon, Syria, Jordan, Egypt, Morocco, Algeria, and Tunisia.