2021 | Sample Car Benefit Policies

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2021 | sample car benefit policies

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Car benefits have traditionally been From the pandemic, to companies looking for ways to reduce their carbon footprint, evaluating the car benefits offered an important feature of executives’ and how they best fit with the on-the-ground situation in and managers’ remuneration. They your countries and locations of operation will be key. Pay attention to local situations as requirements and guidance emerged in the 1960s as a powerful from local authorities may differ significantly. For example, if the recommendation is to avoid public transportation, attraction and retention tool and have are there other benefits your company would like to offer? become an invaluable perquisite for Purchasing a fleet of vehicles may not be realistic, and a car allowance may not be feasible, but a parking allowance employees across the world. or subsidy may be well received by employees who find themselves out-of-pocket. If the market is encouraging But times have changed, especially with the onset of ways to lower CO2 emissions, maybe it would be best to COVID-19. In 2020, many countries and businesses moved implement more green car policies. to a “work from home” approach (where possible), and the need for transportation to and from work was eliminated One thing is certain, these are unprecedented times and for non-essential workers for a period of time. As markets some creative thinking may be needed to provide employees began to reopen, health and safety remained top priority with benefits that help them to feel valued and socially and caution was placed on the use of public transportation. aware. Most companies, however, did not make immediate changes to their car benefit policies. Although the future is unknown, it’s possible that the next couple of years will see some changes to these benefits and perhaps an emergence of other alternate benefits relating to safe transportation.

The 2021 Car Benefit Policies publication provides human resources (HR) and business managers with up-to-date Car eligibility and benefit overview About this report information on car benefit policies. Presenting a consistent •• Eligibility by employee level This section delineates the methods of data gathering and set of global data, this publication contains detailed cleaning used for the report and lists key definitions. It is information on a variety of transportation-related benefit •• Typical vehicle make and model composed of the following subsections: programs, allowing you to gain insight into a host of markets •• Vehicle purchase price, monthly lease amount, monthly around the world. Going beyond prevalence and eligibility allowance information, this report is a one-stop-shop for any HR or •• Methodology includes data sources used to compile business manager looking to devise, alter, or otherwise this report, currency conversion rates, and other details assess their company’s employee car benefit policy. This Car benefit policies on calculations and assumptions. regional publication includes data from XX markets and •• Glossary provides definitions for many of the terms benefit details for five career levels commonly found in most •• Eligibility criteria used throughout this report, as well as other HR-related organizations. •• Green policies terms. The report includes the following sections: •• Company-owned vehicle policies Regional results •• Company-leased vehicle policies •• Car allowances Each regional section provides critical data to those looking •• Alternate transportation benefits to learn more about specific countries or markets. The regional sections are presented in geographical groupings, each of which contains market-specific information.

Market summaries are provided for Market 50 markets using this single page layout. Median vehicle purchase price 73% of companies offer a car benefit Local currency USD N Head of organization 720,000 87,217 27 Car benefit eligibility by employee level Cost-related amounts are provided Executive in local625,000 currency and USD.75,709 Currency 30 Head of organization 96% conversion rates can be found in Management 625,000 65,413 31 N=78 the About this report section. Executive 98% Professional nonsales 540,000 52,136 8 N=81 Professional sales 460,800 55,819 33 Management 93% Median monthly lease amount N=101 Local currency USD N Professional nonsales Median data are provided 38% unless otherwise noted. N=88 SAMPLEHead DATA of organization 11,160 1,352 43 Professional sales 91% Executive 10,500 1,272 50 N=94 Management 9,167 1,110 55 Professional nonsales 9,000 1,090 19 TheTypical 'N=' indicates make the and sample model size provided by employee level Professional sales 7,800 945 53 for each question. This information indicates Career levels Make and model the vehicle model commonly provided to each career level. Median monthly allowance Head of organization Audi A6, BMW 3 Series, Volkswagen Passat Executive Audi A6, BMW 3 Series, Volkswagen Passat, Volvo V70 Local currency USD N Management Audi A4, Ford Mondeo, Volkswagen Passat Head of organization 11,504 1,394 40 Executive 10,000 1,211 50 Professional nonsales Ford Mondeo, Volkswagen Passat Management 8,417 1,020 58 Professional sales Ford Mondeo, Skoda Octavia, Volkswagen Passat Professional nonsales 6,500 787 24

Detailed market data are provided This data represents the overall Market for 57 markets using this multi page car benefit prevalence. layout. Eligibility overview 73% of companies offer a car benefit

TransportationThe first two pages benefits for each offered market focus on eligibility of Car benefit eligibility car benefits, along with information relating to purchase Company-ownedprice, lease amounts, vehicles and car allowances. 32% Head of organization 73% This graphic indicates the percentage Executive Company-leased vehicles 47% of companies providing a car benefit to 83% each career level. Car allowance 77% Management 45% Some questions allowed more than Alternate transportationone response. The sum of all responses 63% Professional nonsales 23% benefits will typically be greater than 100% for The 'N=' indicates the sample size N=163 these questions. for each question.Professional sales 73%

Note: More than one response was permitted; percentages may sum to more than 100%. N=160

Transportation benefit eligibility SAMPLE DATA

Head of organization Executive Management Professional nonsales Professional sales N= Vehicle 60% 66% 39% 19% 64% 10 Company-owned 58% 54% 33% 31% 52% 10 Company-leased This graphic57% provides details based on69% the number of 44% 17% 73% 10 companies that offer each benefit type. For example, Car allowance 66% of companies60% that offer a vehicle75% as their benefit 43% 30% 56% 10 Alternate benefit provide a company-owned88% or company-leased75% vehicle 43% 20% 56% 10 to their executives. Personal car and driver 75% 42% 17% 8% 33% 10 Parking subsidies 100% 100% 91% 73% 64% 10 Public transportation subsidies 100% 100% 100% 100% 100% 10 Walking/cycling allowance – – – – – - ©2021 Mercer LLC. SAMPLE8 Car Benefit Policies — Sample Reading this report Market This section provides an overview of costs Car benefit overview related to purchased or leased vehicles, as well as monthly car allowances provided to employees. Typical make and model provided

Career levels Make and model This information indicates Head of organization Audi Q5, Toyota Camry, Jeep Grand Cherokee the vehicle model commonly Executive Mazda Cx5, Toyota Kluger provided to each career level. Management Ford Ranger, Holden Commodore, Toyota Kluger, Toyota Camry Professional nonsales Toyota Camry, Ford Ranger, Holden Commodore Professional sales Holden Commodore, Toyota Camry, Ford Mondeo, Ford Ranger Median vehicle purchase price

Head of organization Executive Management Professional nonsales Professional sales

Local currency Cost-related amounts are provided65,000 55,000 47,500 40,000 35,000 USD in local currency and USD. Currency46,171 39,068 33,740 28,413 24,861 conversion rates can be found in N= the About this report section. 59 SAMPLE47 DATA42 41 79 Median monthly lease amount

Head of organization Executive Management Professional nonsales Professional sales Local currency 65,000 55,000 47,500 40,000 35,000 USD 46,171 39,068 33,740 28,413 24,861 N= 59 47 42 41 79

Median monthly car allowance Median data are provided unless otherwise noted. Head of organization Executive Management Professional nonsales Professional sales Local currency 65,000 55,000 47,500 40,000 35,000 USD 46,171 39,068 33,740 28,413 24,861 N= 59 47 42 41 79

Source: Mercer’s 2020 Total Remuneration Survey. ©2021 Mercer LLC. SAMPLE9 Car Benefit Policies — Sample Reading this report Market This section includes information on car Car benefit policies benefit policies such as the type of policy maintained, edibility criteria, and green Type of car benefit policy policies provided. Department responsible for car benefit policy design

Facilities 3%

Finance 20% 31% The shaded19% portion indicates 46% 23% the percentage of companies Human resources 63% managing a global, regional, or local car benefit policy. Global Regional Local Local, but parent Procurement 6% organization controlsThe 'N=' indicates the some major aspects ofsample Othersize for each 8% the policy question. N=163 SAMPLEN=162 DATA

Frequency of car benefit policy review

More than 1% once a year 34% Annually 23% Every 2–3 years

Every 4–5 3% years 39% Ad hoc/as needed

N=163 ©2021 Mercer LLC. SAMPLE10 Car Benefit Policies — Sample Reading this report Market This section includes information on company-owned vehicle Company-owned vehicle policies policies such as typical vehicle types, vehicle replacement polices, and policy coverage for vehicle-related expenses. Company owns vehicles for car benefit program

90% In some markets, a company-owned vehicle policy may not be common. In this market, only 10% of companies own their fleet of company vehicles. 10%

Yes No The 'N=' indicates the sample size for each N=163 question. Not all questions were applicable to all survey participants so the number varies from question to question. SAMPLE DATA

Note: Due to the low prevalence of this type of benefit among survey participants, additional data are not available for this country.

Because this type of benefit is not common in this market, the sample size for other questions relating to company-owned vehicles is too low to report. Additional tables and graphs on this topic have been intentionally omitted.

©2021 Mercer LLC. SAMPLE11 Car Benefit Policies — Sample Reading this report Market This section includes information on company-leased vehicle Company-leased vehicle policies policies such as common vehicle types, length of vehicle lease, and policy coverage for vehicle-related expenses. Company leases vehicles for car benefit program Eligibility by employee level The shaded bar indicates the percentage of employee levels eligible to receive a Head of organization company-leased vehicle. 57% Executive 69% 47% 53% Management 44% Professional nonsales 17%

Professional sales 73% Yes No N=163 SAMPLEN=70 DATA

Intended use of company–leased vehicle

8% 8% 23% 25%

Head of Professional Executive Management Professional sales organization 58% nonsales 42% N=13 N=13 N=12 N=13 N=3 75% 77% 93% 92%

Business only Business and personal ©2021 Mercer LLC. SAMPLE12 Car Benefit Policies — Sample Reading this report Market This section includes information on car allowance Car allowances programs including eligibility, allowance amounts, and policy coverage of vehicle-related expenses. Company has car allowance program Eligibility by employee level The shaded bar indicates the This graphic indicates the Head of organization percentage of employee levels 60% percentage of organizations eligible to receive a car allowance. that offer a car allowance Executive 77% program. 75% Management 43% 23% Professional nonsales 20% Professional sales 56% Yes No N=163 SAMPLEN=126 DATA

Employee may choose an allowance instead of a vehicle Employee must use car allowance toward cost of a vehicle

Yes 39% 13% 19% 36% 33% No 61%

Yes, all employees Yes, some employees No Not applicable, we may choose may choose only offer allowances Occasionally, the sum of the responses to a question N=126 may be slightly more or less than 100%. This is due N=126to rounding. ©2021 Mercer LLC. SAMPLE13 Car Benefit Policies — Sample Reading this report Market This section includes information on various alternate Alternate transportation benefits transportation benefits, such as a personal car and driver, prearranged employee transportation, parking subsidies, public Personal car and driver transportation subsidies, and walking or cycling allowance. The shaded bar indicates the percentage Regular access to personal car and driver Eligibility by employee level of employee levels eligible to receive alternate transportation benefits.

Head of organization 75%

Executive 42%

88% Management 17%

12% Professional nonsales 8%

Professional sales 33%

Yes No N=12 N=103 SAMPLENote: DATA More than one response was permitted; percentages may sum to more than 100%.

Reasons for providing a personal car and driver Limitations of employee’s use of personal car and driver

50% Market competitiveness 67% Status/seniority

Limited or no availability of Employee safety concerns 25% public transportation 25% 33% 25% 33% 8%

International mobility/ Other 17% expatriate employee 17% Business use Handled on a No limitations Other Spouse/family of only case-by-case basis international mobility/ 20% expatriate employee N=12 N=12 Note: More than one response was permitted; percentages may sum to more than 100%. ©2021 Mercer LLC. SAMPLE14 Car Benefit Policies — Sample region ©2021 Mercer LLC. SAMPLE15 Car Benefit Policies — Sample Country

Median vehicle purchase price 50% of companies offer a car benefit Local currency USD N Car benefit eligibility by employee level Head of organization 10,000 10,000 100 Executive 10,000 10,000 100 Head of organization 50% N=100 Management 10,000 10,000 100 Professional nonsales 10,000 10,000 100 Executive 50% N=100 Professional sales 10,000 10,000 100

Management 50% Median monthly lease amount N=100 Professional nonsales 50% Local currency USD N N=100 Head of organization 10,000 10,000 100 Professional sales 50% Executive 10,000 10,000 100 N=100 Management 10,000 10,000 100 Professional nonsales 10,000 10,000 100 Typical make and model provided by employee level Professional sales 10,000 10,000 100 Career levels Make and model Median monthly allowance Head of organization Toyota Executive Toyota Local currency USD N Management Toyota Head of organization 10,000 10,000 100 Professional nonsales Toyota Executive 10,000 10,000 100 Management 10,000 10,000 100 Professional sales Toyota Professional nonsales 10,000 10,000 100 Source: Mercer’s 2020 Total Remuneration Survey. Professional sales 10,000 10,000 100 ©2021 Mercer LLC. SAMPLE16 Car Benefit Policies — Sample Country

Eligibility overview 50% of companies offer a car benefit

Transportation benefits offered Car benefit eligibility Company-owned vehicles 50% Head of organization 50%

Company-leased vehicles 50% Executive 50%

Car allowance 50% Management 50% Alternate transportation 50% Professional nonsales 50% benefits N=100 Professional sales 50%

Note: More than one response was permitted; percentages may sum to more than 100%. N=100

Transportation benefit eligibility

Head of organization Executive Management Professional nonsales Professional sales N= Vehicle 100% 100% 100% 100% 100% 100 Company-owned 100% 100% 100% 100% 100% 100 Company-leased 100% 100% 100% 100% 100% 100 Car allowance 100% 100% 100% 100% 100% 100 Alternate benefit 100% 100% 100% 100% 100% 100 Personal car and driver 100% 100% 100% 100% 100% 100 Parking subsidies 100% 100% 100% 100% 100% 100 Public transportation subsidies 100% 100% 100% 100% 100% 100 Walking/cycling allowance 100% 100% 100% 100% 100% 100 ©2021 Mercer LLC. SAMPLE17 Car Benefit Policies — Sample Country Car benefit overview

Typical make and model provided

Career levels Make and model Head of organization Toyota Executive Toyota Management Toyota Professional nonsales Toyota Professional sales Toyota

Median vehicle purchase price

Head of organization Executive Management Professional nonsales Professional sales Local currency 10,000 10,000 10,000 10,000 10,000 USD 10,000 10,000 10,000 10,000 10,000 N= 100 100 100 100 100

Median monthly lease amount

Head of organization Executive Management Professional nonsales Professional sales Local currency 10,000 10,000 10,000 10,000 10,000 USD 10,000 10,000 10,000 10,000 10,000 N= 100 100 100 100 100

Median monthly car allowance

Head of organization Executive Management Professional nonsales Professional sales Local currency 10,000 10,000 10,000 10,000 10,000 USD 10,000 10,000 10,000 10,000 10,000 N= 100 100 100 100 100

Type of car benefit policy Department responsible for car benefit policy design

Facilities 50% 25% 25% 25% 25% Finance 50% Human resources 50%

Procurement Global Regional Local Local, but parent 50% organization controls some major aspects of Other 50% the policy

N=100 N=100

Frequency of car benefit policy review

More than 5% once a year 50%Annually 50% Every 2–3 years

Every 4–5 5% years 50% Ad hoc/as needed

Benefit eligibility criteria

Criteria used for determining employee eligibility Factors considered when determining business need for car benefit

Necessity of a car (e.g., sales 50% role with frequent road travel requirements) 10% 10% Job level or grade Minimum annual business 50% mileage

10% 10% Status/seniority Percentage of time absent from office on company business 50%

Number of locations employee 50% 10% 10% Employee safety concerns must visit on regular basis N=100

N=100 Note: More than one response was permitted; percentages may sum to more than 100%.

10% Note: More than one response was permitted; percentages may sum to more than 100%.

Policy for employees that transition from a car benefit eligible position to a noneligible position

Employee continues to receive Benefit is based on seniority Employee continues to receive benefit for a specific amount Provide a temporary (i.e., employee would need to benefit (status quo) of time (e.g., until the vehicle displacement allowance 10% be demoted to lose benefit) 10% 10% 10% lease expires)

Provide a permanent Handled on a case-by-case Policy does not address Terminate benefit 10% displacement allowance 10% 10% basis 10% this N=100 ©2021 Mercer LLC. SAMPLE20 Car Benefit Policies — Sample Country

Green policies

Steps taken toward a greener car benefit program Charging stations for electric vehicles at offices

Limit/reduce the number of company cars 25% 25% 50% N=100 25% 25% 50%

Add hybrid/electric vehicles to company car fleet Yes, at all locations Yes, at some locations No

25% 25% 50% N=100 N=100 Cover the setup costs of electric vehicle charging station at Promote the use of public transport by offering subsidies or allowances employee’s home 25% 25% 50% Yes, for company and 50% N=100 personal vehicles

Yes, if the employee’s Actively promote other transportation (car pools, bicycles) company vehicle is electric 50%

25% 25% 50% No 50% N=100

N=100 Limit vehicle options to those with lower CO2 emissions 25% 25% 50% N=100

Company owns vehicles for car benefit program Eligibility by employee level

Head of organization 50%

Executive 50%

82% Management 50% 18% Professional nonsales 50% Professional sales 50% Yes No

N=100 N=100 Note: More than one response was permitted; percentages may sum to more than 100%.

Intended use of company-owned vehicle

Head of Executive Management Professional Professional organization nonsales sales N=100 N=100 N=100 N=100 N=100

100% 100% 100% 100% 100%

Method of charging employees for private use of vehicle Employees ability to choose their vehicle

Benefit-in-kind only (i.e., employee pays taxes on their 25% They may choose based on a certain type of vehicle (make and model) benefit but is not required to make a contribution to the 50% company)

They may choose based on a maximum cost (purchase price) Monthly charge to company only (i.e., salary deduction 25% 50% payment to company for private use of the car)

25% They may choose based on a combination of vehicle type and maximum cost 50% Combination of benefit-in-kind and monthly charge

25% Vehicles are allocated based on fleet availability/policy

N=100 N=100

Types of vehicles in company-owned fleet

Hybrid/electric 50% Compact/economy 50%

Midsize/intermediate 50% Full size 50%

Sports/convertible 50% Luxury 50%

SUV 50% Minivan/people carrier 50%

N=100 Note: More than one response was permitted; percentages may sum to more than 100%.

Vehicle category provided to each employee level

Vehicle category Head of organization Executive Management Professional nonsales Professional sales

Hybrid/electric 100% 100% 100% 100% 100%

Compact/economy 100% 100% 100% 100% 100%

Midsize/intermediate 100% 100% 100% 100% 100%

Full size 100% 100% 100% 100% 100%

Sports/convertible 100% 100% 100% 100% 100%

Luxury 100% 100% 100% 100% 100%

SUV 100% 100% 100% 100% 100%

Minivan/people carrier 100% 100% 100% 100% 100%

N= 100 100 100 100 100 Note: More than one response was permitted; percentages may sum to more than 100%.

Vehicle replacement policies

Policy for replacing a company-owned vehicle Frequency of vehicle replacement

12 months or less 50%

13–24 months 50% 25% 25% 50% 25–36 months 50% 37–48 months 50%

Vehicle is replaced after a Vehicle is replaced after a No replacement policy 49–60 months 50% certain number of months certain number of miles or kilometers More than 60 months 50%

N=100 N=100

Mileage/kilometer threshold for vehicle replacement 0% 25% 75%

0–60,000 miles or 0–100,000 kilometers 60,001–75,000 miles or 100,001–125,000 kilometers 75,001–90,000 miles or 125,001–150,000 kilometers 0% 0% 0%

90,001–105,000 miles or 150,001–175,000 kilometers 105,001–120,000 miles or 175,001–200,000 kilometers More than 120,000 miles or 200,000 kilometers N=100 ©2021 Mercer LLC. SAMPLE25 Car Benefit Policies — Sample Country

Policy for covering vehicle-related expenses

Company coverage of fuel costs Company coverage of insurance costs

50% All fuel 50% All costs, including the excess/deductible if a claim is required 50% Business fuel only None, the employee is 50% responsible 50% All costs, except the excess/deductible if a claim is required 50% Varies by employee level

N=100 50% None, the employee is responsible

50% Varies by employee level

N=100

Company coverage of maintenance costs Company coverage of tax-related costs (e.g., road tax) All maintenance costs 50% Some maintenance costs 50% 25% 25% 25% 25% None, the employee is responsible 50%

Varies by employee level 50% All tax-related Some tax-related None, the employee Varies by employee costs costs is responsible level N=100 N=100 ©2021 Mercer LLC. SAMPLE26 Car Benefit Policies — Sample Country Company-leased vehicle policies

Company leases vehicles for car benefit program Eligibility by employee level

Head of organization 50% 65% Executive 50% Management 50%

35% Professional nonsales 50%

Professional sales 50% Yes No N=100 N=100 Note: More than one response was permitted; percentages may sum to more than 100%.

Intended use of company–leased vehicle

Professional Professional Head of Executive Management organization nonsales sales N=100 N=100 N=100 N=100 N=100

100% 100% 100% 100% 100%

Method of charging employees for private use of leased vehicle Employees ability to choose their vehicle

Benefit-in-kind only (i.e., employee pays taxes on their 25% They may choose based on a certain type of vehicle (make and model) benefit but is not required to make a contribution to the 50% company)

They may choose based on a maximum cost (monthly lease) Monthly charge to company only (i.e., salary deduction 25% 50% payment to company for private use of the car)

25% They may choose based on a combination of vehicle type and maximum cost 50% Combination of benefit-in-kind and monthly charge

25% Vehicles are allocated based on fleet availability/policy

N=100 N=100

Employees permitted to purchase the vehicle at the end of lease agreement

11% 22%

Varies by Yes No employee level 67%

Typical length of vehicle lease Types of vehicles in company-leased fleet Hybrid/electric 50% 25% 12 months or less 25% 49–60 months Compact/economy 50%

Midsize/intermediate 25% 13–24 months 25% More than 60 months 50% Full size 50%

25% 25–36 months 25% Varies by employee level Sports/convertible 50%

Luxury 50% 25% 37–48 months SUV 50%

Minivan/people carrier 50%

N=100 N=100 Note: More than one response was permitted; percentages may sum to more than 100%. Vehicle category provided to each employee level

Vehicle category Head of organization Executive Management Professional nonsales Professional sales Hybrid/electric 100% 100% 100% 100% 100% Compact/economy 100% 100% 100% 100% 100% Midsize/intermediate 100% 100% 100% 100% 100% Full size 100% 100% 100% 100% 100% Sports/convertible 100% 100% 100% 100% 100% Luxury 100% 100% 100% 100% 100% SUV 100% 100% 100% 100% 100% Minivan/people carrier 100% 100% 100% 100% 100% N= 100 100 100 100 100

Policy for covering vehicle-related expenses

Company coverage of fuel costs Company coverage of insurance costs

50% All fuel 25% All costs, including the excess/deductible if a claim is required 50% Business fuel only 50% None, the employee is responsible 25% All costs, except the excess/deductible if a claim is required 50% Varies by employee level

N=100 25% None, the employee is responsible

25% Varies by employee level

N=100

Company coverage of maintenance costs Company coverage of tax-related costs (e.g., road tax)

All maintenance costs 50%

Some maintenance costs 50% None, the employee is 25% 25% 25% 25% responsible 50%

Varies by employee level 50% All tax-related Some tax-related None, the employee Varies by employee costs costs is responsible level N=100 N=100 ©2021 Mercer LLC. SAMPLE30 Car Benefit Policies — Sample Country Car allowances

Company has car allowance program Eligibility by employee level

Head of organization 50%

Executive 50%

82% Management 50% 18% Professional nonsales 50% Professional sales 50% Yes No N=100 N=100 Note: More than one response was permitted; percentages may sum to more than 100%.

Employee may choose an allowance instead of a vehicle Employee must use car allowance toward cost of a vehicle

Yes 50% 25% 25% 25% 25% No 50%

Allowance amounts Policy coverage of vehicle-related expenses

Factors considered when determining car allowance amount Company coverage of fuel costs for employees with a car allowance 50% 50% Costs of providing a vehicle All fuel

50% 50% Costs of maintaining a vehicle Business fuel only

50% 50% Costs of insuring a vehicle Maximum annual spending cap

50% 50% Tax and social security contributions paid by the employee Included in the car allowance

50% 50% Market competitiveness Employee receives mileage/kilometer reimbursement

50% 50% Job level/salary band of employee Employee has a fuel card N=100 50% Note: More than one response was permitted; percentages may sum to more than 100%. Varies by employee level

N=100

Reimbursement for mileage/kilometer for employees with Mileage/kilometer reimbursement versus local statutory a car allowance requirements for employees with a car allowance

Amounts provided are in Amounts provided are Reimbursed for all business-related miles/kilometers, line with locally specified lower than locally specified including commuting to and from the office 25% 25% 25% rates rates

25% Amounts provided 25% There are no locally are higher than locally specified rates 75% Reimbursed for business-related miles/kilometers only specified rates

N=100 N=100

Reimbursement of other vehicle expenses for employees with a car allowance

7% 7% 7% 7% 7% 7%

Tax-related Maintenance Insurance costs N=100 N=100 N=100

86% 85% 86%

Personal car and driver

Regular access to personal car and driver Eligibility by employee level

Head of organization 50%

Executive 50%

50% 50% Management 50%

Professional nonsales 50%

Professional sales 50%

Yes No N=100 N=100 Note: More than one response was permitted; percentages may sum to more than 100%.

Reasons for providing a personal car and driver Limitations of employee’s use of personal car and driver

50% Market competitiveness 50% Status/seniority

Limited or no availability of Employee safety concerns 50% public transportation 50% 25% 25% 25% 25%

International mobility/ Other 50% expatriate employee 50% Business use Handled on a No limitations Other Spouse/family of only case-by-case basis international mobility/ 50% expatriate employee N=100 N=100 Note: More than one response was permitted; percentages may sum to more than 100%. ©2021 Mercer LLC. SAMPLE34 Car Benefit Policies — Sample Country

Prearranged employee transportation

Regular prearranged employee transportation to and from the office Transportation is provided as a shared service among employees (one taxi transports several employees)

89% 25% 25% 50% 11%

Yes No Varies by employee level Yes No N=100 N=100

Reasons for providing prearranged employee transportation

Limited or no availability of public Market competitiveness Status/seniority 50% 50% 50% transportation

50% Employee safety concerns 50% International mobility/expatriate employee 50% Other N=100 Note: More than one response was permitted; percentages may sum to more than 100%.

Parking subsidies

Provision of subsidized or free parking Eligibility by employee level

Head of organization 50%

Executive 50%

67% Management 50% 33% Professional nonsales 50% Professional sales 50%

Yes No N=100 N=100 Note: More than one response was permitted; percentages may sum to more than 100%.

Cost of parking fully covered by company

25% 25% 25% 25%

Yes, for all locations in Yes, for some locations in No, the employee covers a Varies by this country this country portion of the cost employee level N=100 ©2021 Mercer LLC. SAMPLE36 Car Benefit Policies — Sample Country

Public transportation subsidies

Cost of public transportation is subsidized Eligibility by employee level

Head of organization 50%

Executive 50% 56% Management 50% 44% Professional nonsales 50%

Professional sales 50%

Yes No N=100 N=100

Note: More than one response was permitted; percentages may sum to more than 100%.

Delivery format of this benefit Benefit covers 100% of public transportation cost

Company provides Employee may choose an 40% annual or monthly transit 20% annual/monthly transit pass passes or an allowance 25% 25% 50% Employee receives an allowance to cover or Other 40% supplement their costs 0% Yes No Varies by employee level N=100 N=100 ©2021 Mercer LLC. SAMPLE37 Car Benefit Policies — Sample Country

Walking or cycling allowance

Walking or cycling allowance provided Eligibility by employee level

Head of organization 50%

Executive 50% 67% Management 50% 33% Professional nonsales 50%

Professional sales 50%

Yes No N=100 N=100 Note: More than one response was permitted; percentages may sum to more than 100%.

How allowance (or related benefit) is provided

67% 0% 33% 0% 0%

Flat amount paid to Amount paid based on Subsidy provided to Employees have access to Other employee distance of commute purchase a bicycle company provided bicycles N=100 Note: More than one response was permitted; percentages may sum to more than 100% ©2021 Mercer LLC. SAMPLE38 Car Benefit Policies — Sample Country Data sources

Data section Source Year

Eligibility overview

Percentage of companies offer a car benefit Mercer’s Total Remuneration Survey (TRS) 2020

All other eligibility data Mercer’s Car Benefit Policies 2020/2021

Car benefit overview

Typical vehicle make and model Mercer’s Total Remuneration Survey (TRS) 2020

Vehicle purchase price Mercer’s Total Remuneration Survey (TRS) 2020

Monthly car allowance Mercer’s Total Remuneration Survey (TRS) 2020

Car benefit polices Mercer’s Car Benefit Policies 2020/2021

Company-owned vehicle policies Mercer’s Car Benefit Policies 2020/2021

Company-leased vehicle policies Mercer’s Car Benefit Policies 2020/2021

Alternate transportation benefits Mercer’s Car Benefit Policies 2020/2021

This section provides information on the methods of collecting, collating, and analyzing data for this publication. Below are notes on exceptions and exclusions in the data and a list of data sources, relevant equations, and currency conversion rates. Readers will also find a glossary of key terms.

Data collection Data analysis •• N or sample size: The number of companies that reported data for the statistic. Data for this publication were collected from the following •• Endash or “–”: The sample is too small to provide primary data sources: Statistics the statistic. The following statistics are presented in this report: •• Mercer’s 2020 Total Remuneration Survey (TRS) Data masking •• Mercer’s 2020/2021 Car Benefit Policies •• Median: The data point that is higher than 50% of all other data in the sample when ranked from low to high. To ensure the confidentiality of all companies that provide The Talent All Access® team referred to and collated Also known as the 50th percentile. data to Mercer’s surveys, statistics have been “masked” by published data from Mercer’s individual TRS reports for displaying an endash or “–” when minimum sample sizes are inclusion in this publication. Additional details on TRS can •• Average: The sum of all data reported divided by the not met. be found in the Glossary. number of data observations in the sample. Also known as the mean. Note: This source may differ for select markets, refer to the •• Prevalence: The percentage of companies that provided detailed Data sources section for more information. a response to a question with a defined number of Data were collected through Mercer’s 2020/2021 Car Benefit options to choose from. For example, a single response Policies survey. The survey was open to all companies that question or a multiple response (select all that apply) offer car or alternate transportation benefits and have style question. operations in at least one of the markets included in the survey. More than 2,000 survey submissions were received. •• In single response questions, the sum of all responses may not equal 100% due to rounding. Note: Participants completed questions that were applicable •• In multiple response questions, the sum of all to their policies; therefore, sample sizes vary by question. responses will be greater than 100%. Keep sample size in mind when making decisions; a small sample size may not be a true reflection of the market. ©2021 Mercer LLC. SAMPLE41 Car Benefit Policies — Sample Methodology

Data exceptions and notes Europe, Middle East & Africa

Some markets have specific nuances as outlined below. Vehicle purchase price; monthly lease amount; monthly allowance

Americas Unless otherwise noted, data represented are median values. Vehicle purchase price; monthly lease Vehicle purchase price; monthly lease amount; monthly allowance amount Except for Argentina, Brazil, Canada, Colombia, Chile, Mexico, Data represented for all markets in this region include VAT, Peru and United States (median values), data represented for except the following: all the markets in this region are average values..

•• Egypt Asia Pacific •• Israel Data were collected from Beijing and Shanghai; cost •• Qatar data reported for China is sourced from Mercer’s 2019 China-Shaghai Total Remuneration Survey (TRS). •• Saudi Arabia •• United Arab Emirates Vehicle purchase price; monthly lease amount; monthly allowance

Unless otherwise noted, data represented are median values.

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Planning for the future? Request Demo Use our calculators to help evaluate cost saving opportunities and benchmark your company policies to others in the market. SAMPLE Mercer believes in building brighter futures by redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and well-being. Mercer’s more than 25,000 employees are based in 44 countries and the firm operates in over 130 countries. Mercer is a business of Marsh & McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people, with 76,000 colleagues and annual revenue of $17 billion. Through its market-leading businesses including Marsh, Guy Carpenter and Oliver Wyman, Marsh & McLennan helps clients navigate an increasingly dynamic and complex environment. For more information, visit www.mercer.com. Follow Mercer on Twitter @Mercer.

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