Banks to increase base salaries by under three percent in 2015: survey

Global banks expect to increase base salaries by less than 3 percent this year and most are not planning to overhaul their pay structure in the face of tougher European Union rules on bonuses, a survey reported on Thursday. Salary increases across banks, insurers and other financial services firms are expected to be between 5-8 percent in emerging markets, 2-3 percent in North America and 1.5-2 percent in Europe, according to a survey of 63 firms by consulting firm Mercer. The survey showed 40 percent of banks had last year introduced role-based allowances (typically 12 monthly payments that are set at the start of the year but not counted as basic pay by banks) in response to a new European Union law capping bonuses at 200 percent of salary, and an additional 10 percent were planning to introduce them. The European Banking Authority (EBA) said in October the role-based allowances counted as variable pay, so banks needed to adapt rules again, but Mercer said its survey showed very few firms were planning to eliminate them.

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