International comparison of remuneration levels

Remuneration levels for skilled employees in Australia are competitive with those of other major developed nations. Despite the strong recent appreciation of the Australian dollar, salary levels for a range of skilled occupations are below those in the United Kingdom, United States, Japan, Hong Kong and Korea.

The relatively lower cost of living in Australia also means that salaries for highly skilled employees help to retain and attract talented employees. The Watson-Wyatt 2007 Global 50 Remuneration Planning Report notes Australia's low inflationary environment over the last decade has meant that cost-of-living is less of a factor in determining salary levels than market trends and performance-based pay.

In 2008, Australia was ranked the fourth most competitive place to do business in the KPMG Competitive Alternatives study. Australia had the fourth lowest labour costs among the ten major industrialised nations, including the United States, United Kingdom, Japan, Italy, France, Germany and the Netherlands. The study rated Australia as the second most competitive location for total manufacturing costs and the third most competitive for transport costs.


International City Comparisons of Total Remuneration: Gross Salary, 2007 (US$) (1,2)

 

Finance

Info technology

Sales

Manufacturing

Human Resources

General Management

 

 

 

 

 

Country

Senior Accnt (3)

Manag't Info Systems Mgr (4)

Nat Account Mgr (5)

Plant Manager (6)

Head of  Human Resources (7)

Business Unit Manager (8)

 

 

 

 

 

 

United Kingdom

86,278

104,238

134,480

179,288

249,379

343,474

Germany

102,874

120,007

139,221

168,815

214,083

295,830

United States

70,200

83,000

111,600

152,200

173,600

220,200

Korea

75,000

87,000

122,000

145,000

187,000

220,000

Japan

76,686

90,766

107,716

124,530

157,704

217,161

Hong Kong

69,241

87,431

104,784

121,575

149,439

206,046

Australia

81,584

92,708

102,916

131,095

157,320

198,755

Taiwan

69,254

83,413

100,465

121,004

145,742

175,537

Singapore

51,040

60,034

95,786

108,560

127,684

147,655

Malaysia

27,059

31,208

42,871

53,423

70,774

92,229

Phillipines

21,343

26,869

38,414

45,484

71,967

88,047

India

12,880

19,818

26,607

39,020

43,295

65,472

China

32,912

39,697

51,692

75,420

100,236

n.a.

Thailand

23,483

29,047

35,952

46,816

n.a.

n.a.


Footnotes:
1 Total remuneration data cover locally engaged employees, and refer to annual basic guaranteed salary (including typical cash and non-cash benefits, but excluding performance bonuses)
and statutory employment payments (such as superannuation contributions, unemployment and health insurance)
2 Median salary as at July 2007. Where necessary, data has been aged to this date to reflect predicted salary.
3: Senior Accountant (Global Grade 13): responsible for maintaining accounts and preparing financial statements in accordance with standard accounting practice.
Will report to Department/Function Head who will not supervise work but provide an overview.
Ensures management supplied with adequate and accurate information.
Will manage specific accounting functions within the organisation.
Will contribute to discussion regarding the development of new systems and procedures in line with business needs.
Responsible for staff in a ‘team leader’ type role.
4: Head of Information Technology/MIS Manager (Global Grade 14): responsible for day-to-day control of computer operations and information services requirements.
Small organisation, reporting to the Head of Administration, Management Services or Finance.
Likely to supervise a small team, including one or two technical specialists.
Development activities may be limited and restricted to selection and implementation of commercial packages.
5: National Account Manager (Global Grade 15): responsible for development and sales in a particular location or area.
Medium sized company
Will handle negotiations at a high level, and have considerable discretion to negotiate terms
Likely to work alone or with, at most, one or two supporting sales executives.
Will be technically qualified and have at least eight years’ relevant experience including at least three years as a key/ major Accounts Executive.

Source: Watson-Wyatt 2007 Global 50 Remuneration Planning Report