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EM E R C E R TA L E N T A L L A C C E S S PL2019CAR BENEFIT POLICIES &A LT E R N A T E T R A N S P O R T A T I O NSAMSAMPLE
MERCER'S GLOBAL PUBLICATIONS23AMERICAS193ASIA a211Bangladesh7Report ShanghaiABOUT THIS REPORT77Chile33Methodology92Colombia109Costa Rica37ABOUT MERCER111Dominican Republic113Ecuador128El Salvador130Guatemala132Honduras134Mexico247Hong Kong262India279Indonesia296Japan298Malaysia315New th Korea381Sri o Rico395Thailand172United LE OF CONTENTS4
611MIDDLE EAST AND AFRICA679WESTERN gypt695Belgium432Bulgaria629Ivory ech audi Arabia468Hungary660Tunisia483Kazakhstan662United Arab n902Switzerland917United KingdomTABLE OF CONTENTSCENTRAL AND EASTERN EUROPEE427428
Car Benefit Policies —Global Industry FindingsSeverance Pay PoliciesAround the WorldSubscribe to the Talent All Access Portal for exclusive access to onlinetools and all of our publications,or schedule a demo with a Mercerrepresentative.Global Parental LeaveVacation and Other LeavePolicies Around the WorldSeverance Pay PoliciesIndustry ScorecardGlobal Parental LeaveIndustry ScorecardLGBT BenefitsAround the World*Vacation and Other LeaveIndustry ScorecardWorldwide Benefit &Employment GuidelinesWORKFORCE & CAREERSGlobal CompensationPlanningGlobal CompensationPlanning 20 Year Look Back*Global Pay SummaryIncentives Aroundthe WorldNew Graduate StartingSalariesSalary MovementSnapshot**Short-term IncentivesAround the WorldShort-term IncentiveTrends — A 10 Year Review*The Design of WorkWorkforce TurnoverAround the WorldHR Guide to DoingBusiness*HR ManagementTerms*SAMGET EVERY THING INONE PL ACECar Benefit Policies &Alternate TransportationEStay ahead of today’s tightdeadlines and competitive racefor labor with these resources.Covering local benefits, globalcompensation practices, andemerging HR policy trends, thisportfolio contains all of theactionable data, insights, andguidance you need to steer yourorganization to success. Select atitle to learn more about each ofour industry-leading reports, orvisit imercer.com/global for moreinformation.H E A LT H & B E N E F I T SPLORDER ONLINEHANDBOOKS & GUIDESCompensationHandbook*Global MobilityHandbook** Exclusive to Talent All Access subscribers** Not included in Talent All Access HR Atlas*
INTRODUCTIONN O T W H AT T H E YUSED TO BEDifferent companies can have different reasonsfor adopting a car benefit program. For some,providing employees with a car is simply the costof doing business; those employees that musttravel long distances in a sales-based role mayneed a car to fulfill their job function. Otheremployers, whose staff has frequent contact withtheir clients outside of the office, may wish tocontrol their company’s public image by furnishingthose employees with a vehicle that reflects thecompany values, whether that be a luxury vehicleor a more understated option. Finally, manycompanies may see a car benefit policy — eitherin the form of a company-provided vehicle or acar allowance — as a key to their employmentbrand and a major perquisite meant to attract toptalent. Indeed, car benefit policies can providevalue to a company in a number of ways.That said, instituting a car benefit program is nolonger as simple as it once was, and gone arethe days of offering a single luxury vehicle tohigh-ranking executives for unlimited personaland professional use. Today, companies mustdetermine the scope and coverage of a carbenefit policy, from the types of employees thatare eligible, to the types of related expenses thatwill be covered by the company. Is it better todirectly provide a car for your employees’ use,or should you provide a car allowance for themto allocate at their own discretion? Companiesmust bear in mind that solutions may vary basedon an employee’s career level or geographicallocation, and, therefore, may need to implementa tiered policy. To further complicate matters,the introduction of tax policies meant to curbemissions means that some companies shouldconsider the merits of a green car benefit policyor alternative transportation. When HR andbusiness managers also must account for the prosand cons of a company-leased versus companyowned fleet, vehicle replacement thresholds, andspecific makes and models to offer employees, arelatively simple decision to offer car benefits canlead to a fairly complicated HR problem.PLETHE BENEFITS OF AC O M PA N Y C A RSAMFew employee benefits are asfamiliar or widely-recognizedas car benefits. A long-runningtradition for high-rankingexecutives, car benefits havebeen a staple of generousemployee benefit programsand a token of success within afirm for decades. However, ascompanies have curtailed someof their more superfluousexpenses and shareholderoversight increases, carbenefit policies have becomemore pragmatic. Today,car benefit policies remaincommon around the world,but companies continue torethink the structure of theseprograms to ensure that boththe employee and employer arebest served. 2019 MERCER LLC.5CAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
INTRODUCTIONTHINK IT OVEREBefore instituting a car benefit policy, there are a number of factors for everyemployer to consider. Here are a few: How should my company car benefit program promote greener,environmentally-friendly travel solutions? Should we provide vehicles, allowances, or both? Which levels of employees should be eligible for a car benefit?PL If we opt for providing vehicles, should my company purchase or lease thecars offered to employees under a car benefit program? For what purposes should we allow our employees to use their companyprovided car?SAM Which, if any, miscellaneous expenses associated with owning andoperating a vehicle should my car benefit program cover? 2019 MERCER LLC.6CAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
REPORT STRUCTUREThe report includes the following sections:Each regional section provides critical datato those looking to learn more about specificcountries or markets. The regional sections arepresented in geographical groupings, each ofwhich contains market-specific information.This section delineates the methods of datagathering and cleaning used for the reportand lists key definitions. It is composed of thefollowing subsections:EABOUT THIS REPORT Methodology includes data sources used tocompile this report, currency conversionrates, and other details on calculations andassumptions.CAR BENEFI T ELIGIBILI T YAND COST Eligibility by employee level Typical vehicle make and model Glossary provides definitions for many of theterms used throughout this report, as well asother HR-related terms. Vehicle purchase price, monthly lease amount,monthly allowanceCAR BENEFI T POLICIES Eligibility criteriaSAMSUMMARY OF KEYFINDINGSR E G I O N A L R E S U LT SPLThe 2019 Car Benefit Policies & AlternateTransportation publication provides humanresources (HR) and business managers withup-to-date information on car benefit policies.Presenting a consistent set of global data, thispublication contains detailed information on avariety of company car benefit programs, allowingreaders to gain insight into a host of marketsaround the world. Going beyond prevalence andeligibility information, this report is a one-stopshop for any HR or business manager looking todevise, alter, or otherwise assess their company’semployee car benefit policy. This publicationincludes data from 85 markets and benefit detailsfor five career levels commonly found in mostorganizations.This section serves as an executive summaryfor those looking for Mercer‘s insights andobservations. This section is optimal for anyonelooking for regional variations in policies, globalcar benefit trends, and other notable takeawaysfrom the data collected in Mercer’s global survey. 2019 MERCER LLC. Green policies Alternate transportation benefits Company-owned vehicle policies Company-leased vehicle policies Car allowance policies7CAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
EPLSAMREGION
MARKETCAR BENEFI T ELIG IBILI T Y BY EMPLOYEE LE VEL50%HEAD OF ORGANIZATIONN 33LOCAL CURRENCYUSDHEAD OF ORGANIZATION100,000100,000N 20EXECUTIVE80,00080,000N 2080,00080,000N 20PROFESSIONAL NONSALES50,00050,000N 20PROFESSIONAL SALES50,00050,000N 20PLMANAGEMENTEXECUTIVEN 3950%MANAGEMENTN 3781%PROFESSIONAL NONSALESN 37M O N T H LY L E A S E A M O U N T18%PROFESSIONAL SALESN 39SAM51%T YPICAL MAKE AND MODEL PROVIDEDCAREER LEVELSHEAD OF ORGANIZATIONEXECUTIVEEVEHICLE PURCHASE PRICE56% of companies offer a car benefitMANAGEMENTPROFESSIONAL NONSALESMAKE AND MODELMercedes E-Class, BMW 5 SeriesBMW X3, BMW 5 SeriesLOCAL CURRENCYUSDHEAD OF ORGANIZATION100,000100,000N 20EXECUTIVE80,00080,000N 20MANAGEMENT80,00080,000N 20PROFESSIONAL NONSALES50,00050,000N 20PROFESSIONAL SALES50,00050,000N 20LOCAL CURRENCYUSDHEAD OF ORGANIZATION100,000100,000N 20EXECUTIVE80,00080,000N 20MANAGEMENT80,00080,000N 20PROFESSIONAL NONSALES50,00050,000N 20PROFESSIONAL SALES50,00050,000N 20M O N T H LY A L L O WA N C ESkoda Octavia, Volkswagen Jetta, BMW 3 SeriesToyota Corolla, Nissan Sunny, Renault LoganPROFESSIONAL SALESKia CeratoSource: Mercer’s 2018 Total Remuneration Survey 2019 MERCER LLC.9CAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
MARKET56% of companies offer a car benefitEELIGIBILIT Y OVERVIEWT R A N S P O R TAT I O N B E N E F I T S O F F E R E D B YRESPONDENTSCAR BENEFI T ELIG IBILI T Y BY EMPLOYEE LE VEL50%HEAD OF ORGANIZATION50%PLCOMPANY-OWNED VEHICLESEXECUTIVE50%MANAGEMENT81%PROFESSIONAL NONSALES18%PROFESSIONAL SALES51%50%COMPANY-LEASED VEHICLES11%CAR ALLOWANCEALTERNATE TRANSPORTATIONBENEFITS16%N 39SAMN 100T R A N S P O R TAT I O N B E N E F I T E L I G I B I L I T Y B Y E M P L O Y E E L E V E LHEAD OF SPROFESSIONAL MPANY-LEASED51%51%51%51%51%CAR ALLOWANCE5%5%5%5%5%ALTERNATE BENEFIT15%15%15%15%15%PERSONAL CAR AND DRIVER23%23%23%23%23%PARKING SUBSIDIES67%67%67%67%67%PUBLIC TRANSPORTATION SUBSIDIES90%90%90%90%90%WALKING/CYCLING ALLOWANCE37%37%37%37%37%VEHICLE 2019 MERCER LLC.10CAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
COUNTRYCAR BENEFIT OVERVIEWET YPICAL MAKE AND MODEL PROVIDEDCAREER LEVELSMAKE AND MODELHEAD OF ORGANIZATIONMercedes E-Class, BMW 5 SeriesEXECUTIVEBMW X3, BMW 5 SeriesSkoda Octavia, Volkswagen Jetta, BMW 3 SeriesPROFESSIONAL NONSALESPLMANAGEMENTToyota Corolla, Nissan Sunny, Renault LoganPROFESSIONAL SALESKia CeratoVEHICLE PURCHASE PRICEEXECUTIVEMANAGEMENTPROFESSIONAL NONSALESPROFESSIONAL SALESLOCAL 0,00070,00050,00050,0002020202020HEAD OF ORGANIZATIONEXECUTIVEMANAGEMENTPROFESSIONAL NONSALESPROFESSIONAL SALESLOCAL 0,00070,00050,00050,0002020202020HEAD OF ORGANIZATIONEXECUTIVEMANAGEMENTPROFESSIONAL NONSALESPROFESSIONAL SALESLOCAL 0,00070,00050,00050,0002020202020N SAMHEAD OF ORGANIZATIONM O N T H LY L E A S E A M O U N TN M O N T H LY C A R A L L O W A N C EN Source: Mercer’s 2018 Total Remuneration Survey 2019 MERCER LLC.11CAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
COUNTRYCAR BENEFIT POLICIESD E PA R T M E N T R E S P O N S I B L E F O R C A R B E N E F I TPOLICY DESIGNET YPE OF CAR BENEFIT POLICYFACILITIES50%LOCALN 40LOCAL, BUT PARENTORGANIZATION CONTROLSSOME MAJOR ASPECTS OFTHE POLICYSAMGLOBAL60%FINANCE13%HUMAN RESOURCES80%PL22%3%PROCUREMENT3%OTHER3%N 40FREQUENCY OF CAR BENEFIT POLICY REVIEW0%10%N 4043%MORE THAN ONCE A YEAR 2019 MERCER LLC.30%ANNUALLY18%EVERY 4-5 YEARS12EVERY 2-3 YEARSAD HOCCAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
COUNTRYBENEFIT ELIGIBILIT Y CRITERIA35%MARKET COMPETITIVENESS95%13%5%3%INTERNATIONAL MOBILITY/EXPATRIATE EMPLOYEEN 40STATUS/SENIORITYEMPLOYEE SAFETY CONCERNSSAM0%LIMITED OR NO AVAILABILITYOF PUBLIC TRANSPORTATIONJOB LEVEL OR GRADENECESSITY OF A CAR (E.G.,SALES ROLE WITH FREQUENTROAD TRAVEL REQUIREMENTS)50%MINIMUM ANNUAL BUSINESSMILEAGE50%PERCENTAGE OF TIME ABSENTFROM OFFICE ON COMPANYBUSINESS11%NUMBER OF LOCATIONSEMPLOYEE MUST VISIT ONREGULAR BASIS16%PL10%BUSINESS NEED(E.G., SALES POSITION)FA C T O R S C O N S I D E R E D I N D E T E R M I N I N GBUSINESS NEED FOR CAR BENEFITECRI T ERI A U SED FOR DET ERMINING EMPLOYEEELIGIBILITYN 19Note: More than one response was permitted; percentages may sum more than 100%.Note: More than one response was permitted; percentages may sum more than 100%.P O L I C Y F O R E M P L O Y E E S T H AT T R A N S I T I O N F R O M A C A R B E N E F I T - E L I G I B L E P O S I T I O N T ONONELIGIBLE POSITION25%0%N 24BENEFIT IS BASED ON SENIORITY(I.E., EMPLOYEE WOULD NEED TOBE DEMOTED TO LOSE BENEFIT)PROVIDE A PERMANENTDISPLACEMENT ALLOWANCE 2019 MERCER LLC.17%EMPLOYEE CONTINUESTO RECEIVE BENEFIT(STATUS QUO)38%TERMINATE BENEFIT134%EMPLOYEE CONTINUES TORECEIVE BENEFIT FOR ASPECIFIC AMOUNT OF TIME(E.G., UNTIL THE VEHICLE LEASEEXPIRES)0%PROVIDE A TEMPORARYDISPLACEMENTALLOWANCE8%HANDLED ON A CASE-BY-CASEBASIS8%POLICY DOES NOTADDRESS THISCAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
COUNTRYS T E P S TA K E N T O WA R D A G R E E N E R C A R B E N E F I T P R O G R A MLIMIT/REDUCE THE NUMBER OF COMPANY CARSEGREEN POLICIESPLADD HYBRID/ELECTRIC VEHICLES TO COMPANY CAR FLEET15%9%76%6%15%79%IMPLEMENTEDPLAN TO IMPLEMENT WITHINTHE NEXT TWO YEARSNO PLANS TOIMPLEMENTIMPLEMENTEDPLAN TO IMPLEMENT WITHINTHE NEXT TWO YEARSNO PLANS TOIMPLEMENTN 34N 34SAMLIMIT VEHICLE OPTIONS TO THOSE WITH LOWER CO 2 EMISSIONS11%11%77%IMPLEMENTEDPLAN TO IMPLEMENT WITHINTHE NEXT TWO YEARSNO PLANS TOIMPLEMENTN 35ACTIVELY PROMOTE OTHER TRANSPORTATION(CAR POOLS, BICYCLES)N 34PROMOTE THE USE OF PUBLIC TRANSPORT BYOFFERING SUBSIDIES OR ALLOWANCES24%9%68%9%9%83%IMPLEMENTEDPLAN TO IMPLEMENT WITHINTHE NEXT TWO YEARSNO PLANS TOIMPLEMENTIMPLEMENTEDPLAN TO IMPLEMENT WITHINTHE NEXT TWO YEARSNO PLANS TOIMPLEMENT 2019 MERCER LLC.N 3514CAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
COUNTRYC O M PA N Y - O W N E D V E H I C L E P O L I C I E S48%52%NON 37SAMYESEELIG IBILI T Y BY EMPLOYEE LE VELHEAD OF ORGANIZATION50%EXECUTIVE50%PLC O M PA N Y O W N S V E H I C L E S F O R C A R B E N E F I TPROGRAMMANAGEMENT81%PROFESSIONAL NONSALES18%PROFESSIONAL SALES51%N 37I N T E N D E D U S E O F C O M PA N Y - O W N E D V E H I C L E15%15%HEAD OFORGANIZATIONN 27EXECUTIVEN 2985%BUSINESS ONLY 2019 MERCER LLC.15%15%MANAGEMENTN 13PROFESSIONALNONSALESN 8PROFESSIONALSALESN 838%63%85%85%85%BUSINESS AND PERSONAL15CAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
COUNTRYEMPLOYEE S ABILI T Y TO CHO O SE T HEIRVEHICLEBENEFIT-IN-KIND ONLY (I.E., EMPLOYEE PAYS TAXES ON THEIR BENEFIT BUT ISNOT REQUIRED TO MAKE A CONTRIBUTION TO THE COMPANY)11%MONTHLY CHARGE TO COMPANY ONLY (I.E., SALARY DEDUCTION PAYMENT TOCOMPANY FOR PRIVATE USE OF THE CAR)6%COMBINATION OF BENEFIT-IN-KIND AND MONTHLY CHARGESAMN 1830% 2019 MERCER LLC.THEY MAY CHOOSE BASED ON A CERTAIN TYPE OF VEHICLE (MAKE, MODEL)PL83%EMET HOD OF CH ARG ING EMPLOYEE S FORP R I VAT E U S E O F V E H I C L E18%THEY MAY CHOOSE BASED ON A MAXIMUM COST (PURCHASE PRICE)30%THEY MAY CHOOSE BASED ON A COMBINATION OF VEHICLE TYPE ANDMAXIMUM COST20%VEHICLES ARE ALLOCATED BASED ON FLEET AVAILABILITY/POLICYN 5016CAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
COUNTRYT Y P E S O F V E H I C L E S I N C O M PA N Y - O W N E D F L E E TCOMPACT/ECONOMY13%52%E4%HYBRID/ELECTRIC57%FULL SIZESPORTS/CONVERTIBLE50%LUXURY39%MINIVAN/PEOPLE CARRIER35%PLMIDSIZE/INTERMEDIATESUVN 234%Note: More than one response was permitted; percentages may sum more than 100%.SAMV E H I C L E C AT E G O R Y P R O V I D E D T O E A C H E M P L O Y E E L E V E LHEAD OF SPROFESSIONAL 0%5%20%MIDSIZE/INTERMEDIATE22%42%60%42%60%FULL URY39%21%10%21%10%28%37%20%37%20%MINIVAN/PEOPLE CARRIER6%5%0%5%0%N 1819101910VEHICLE CATEGORYSUVNote: More than one response was permitted; percentages may sum more than 100%. 2019 MERCER LLC.17CAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
COUNTRYVEHICLE REPLACEMENT POLICIESFREQUENCY OF VEHICLE REPLACEMENTEP O L I C Y F O R R E P L A C I N G A C O M PA N Y - O W N E DVEHICLE12 MONTHS OR LESS65%VEHICLE IS REPLACED AFTERA CERTAIN NUMBER OFMONTHS27%PL13–24 MONTHS60%VEHICLE IS REPLACED AFTERA CERTAIN NUMBER OF MILESOR KILOMETERSNO REPLACEMENT POLICY50%25–36 MONTHS18%37–48 MONTHS71%49–60 MONTHS6%MORE THAN 60 MONTHS50%N 17SAMN 266%MILE AG E /KILOMET ER T HRE SHOLD FOR VEHICLE REPL ACEMEN T14%50%60,001–75,000 MILES OR 100,001–125,000KILOMETERS0–60,000 MILES OR 0–100,000 KILOMETERS14%90,001–105,000 MILES OR 150,001–175,000KILOMETERSN 7 2019 MERCER LLC.43%75,001–90,000 MILES OR 125,001–150,000KILOMETERS14%105,001–120,000 MILES OR 175,001–200,000KILOMETERS1814%MORE THAN 120,000 MILES OR 200,000KILOMETERSCAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
COUNTRYP O L I C Y F O R C O V E R I N G V E H I C L E R E L AT E D E X P E N S E S50%ALL FUEL27%BUSINESS FUEL ONLY9%14%N 2258%NONE, THE EMPLOYEE ISRESPONSIBLE25%ALL COSTS, EXCEPT THE EXCESS/DEDUCTIBLE IF A CLAIM IS REQUIRED13%NONE, THE EMPLOYEE IS RESPONSIBLEVARIES BY EMPLOYEE LEVELSAM4%ALL MAINTENANCE COSTS78%SOME MAINTENANCE COSTS17%VARIES BY EMPLOYEE LEVELN 23 2019 MERCER LLC.VARIES BY EMPLOYEE LEVELN 24C O M PA N Y C O V E R A G E O F M A I N T E N A N C E C O S T SNONE, THE EMPLOYEE ISRESPONSIBLEALL COSTS, INCLUDING THE EXCESS/DEDUCTIBLE IF A CLAIM IS REQUIREDPLFUELC O M PA N Y C O V E R A G E O F I N S U R A N C E C O S T SEC O M PA N Y C O V E R A G E O F F U E L C O S T SC O M PA N Y C O V E R A G E O F T A X - R E L A T E D C O S T S( E . G . , R O A D TA X )4%71%8%17%4%ALL TAX-RELATEDCOSTSSOME TAX-RELATEDCOSTSNONE, THE EMPLOYEEIS RESPONSIBLEVARIES BYEMPLOYEE LEVEL50%N 2419CAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
COUNTRYC O M PA N Y - L E A S E D V E H I C L E P O L I C I E S48%52%NON 28SAMYESEELIG IBILI T Y BY EMPLOYEE LE VELHEAD OF ORGANIZATION50%EXECUTIVE50%PLC O M PA N Y L E A S E S V E H I C L E S F O R C A R B E N E F I TPROGRAMMANAGEMENT81%PROFESSIONAL NONSALES18%PROFESSIONAL SALES51%N 37I N T E N D E D U S E O F C O M PA N Y - L E A S E D V E H I C L E15%15%HEAD OFORGANIZATIONN 27EXECUTIVEN 2985%BUSINESS ONLY15%MANAGEMENTN 1385%BUSINESS AND PERSONALHEAD OF ORGANISATION 2019 MERCER LLC.15%HEAD OF ORGANISATION85%HEAD OF ORGANISATION20PROFESSIONALNONSALESN 847%PROFESSIONALSALESN 853%85%HEAD OF ORGANISATIONPROFESSIONAL NON SALESCAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
COUNTRYEMPLOYEE S ABILI T Y TO CHO O SE T HEIRVEHICLEBENEFIT-IN-KIND ONLY (I.E., EMPLOYEE PAYS TAXES ON THEIR BENEFIT BUT ISNOT REQUIRED TO MAKE A CONTRIBUTION TO THE COMPANY)11%MONTHLY CHARGE TO COMPANY ONLY (I.E., SALARY DEDUCTION PAYMENT TOCOMPANY FOR PRIVATE USE OF THE CAR)6%COMBINATION OF BENEFIT-IN-KIND AND MONTHLY CHARGESAMN 1833% 2019 MERCER LLC.THEY MAY CHOOSE BASED ON A CERTAIN TYPE OF VEHICLE (MAKE, MODEL)PL83%EMET HOD OF CH ARG ING EMPLOYEE S FORP R I VAT E U S E O F L E A S E D V E H I C L E17%THEY MAY CHOOSE BASED ON A MAXIMUM COST (MONTHLY LEASE)33%THEY MAY CHOOSE BASED ON A COMBINATION OF VEHICLE TYPE ANDMAXIMUM COST17%VEHICLES ARE ALLOCATED BASED ON FLEET AVAILABILITY/POLICYN 5021CAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
COUNTRYTYPICAL LENGTH OF VEHICLE LEASE13–24 MONTHS0%25–36 MONTHS3%37–48 MONTHS50%HYBRID/ELECTRIC95%49–60 MONTHS13%E35%12 MONTHS OR V50%MORE THAN 60 MONTHSPL10%T Y P E S O F V E H I C L E S I N C O M PA N Y - L E A S E D F L E E T5%COMPACT/ECONOMY50%FULL SIZE50%LUXURY50%MINIVAN/PEOPLE CARRIER50%VARIES BY EMPLOYEE LEVELN 23N 40SAMNote: More than one response was permitted; percentages may sum more than 100%.V E H I C L E C AT E G O R Y P R O V I D E D T O E A C H E M P L O Y E E L E V E LHEAD OF SPROFESSIONAL 0%5%20%MIDSIZE/INTERMEDIATE22%42%60%42%60%FULL URY39%21%10%21%10%28%37%20%37%20%MINIVAN/PEOPLE CARRIER6%5%0%5%0%N 1819101910VEHICLE CATEGORYSUVNote: More than one response was permitted; percentages may sum more than 100%. 2019 MERCER LLC.22CAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
COUNTRYP O L I C Y F O R C O V E R I N G V E H I C L E R E L AT E D E X P E N S E S50%ALL FUEL27%BUSINESS FUEL ONLY9%14%N 2258%NONE, THE EMPLOYEE ISRESPONSIBLE25%ALL COSTS, EXCEPT THE EXCESS/DEDUCTIBLE IF A CLAIM IS REQUIRED13%NONE, THE EMPLOYEE IS RESPONSIBLEVARIES BY EMPLOYEE LEVELSAM4%ALL MAINTENANCE COSTS78%SOME MAINTENANCE COSTS17%VARIES BY EMPLOYEE LEVELN 9 2019 MERCER LLC.VARIES BY EMPLOYEE LEVELN 24C O M PA N Y C O V E R A G E O F M A I N T E N A N C E C O S T SNONE, THE EMPLOYEE ISRESPONSIBLEALL COSTS, INCLUDING THE EXCESS/DEDUCTIBLE IF A CLAIM IS REQUIREDPLFUELC O M PA N Y C O V E R A G E O F I N S U R A N C E C O S T SEC O M PA N Y C O V E R A G E O F F U E L C O S T SC O M PA N Y C O V E R A G E O F T A X - R E L A T E D C O S T S( E . G . , R O A D TA X )4%75%13%13%0%ALL TAX-RELATEDCOSTSSOME TAX-RELATEDCOSTSNONE, THE EMPLOYEEIS RESPONSIBLEVARIES BYEMPLOYEE LEVEL50%N 823CAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
COUNTRYC A R A L LO WA N C E SYESNOE M P LO Y E E M AY C H O O S E A N A L LO WA N C EINSTEAD OF A VEHICLE12%YES, ALL EMPLOYEES MAYCHOOSE64%NON 3750%EXECUTIVE50%MANAGEMENT81%PROFESSIONAL NONSALES18%PROFESSIONAL SALES51%N 37SAMN 28HEAD OF ORGANIZATIONPL48%52%EELIG IBILI T Y BY EMPLOYEE LE VELC O M PA N Y H A S C A R A L L O W A N C E P R O G R A M 2019 MERCER LLC.4%YES, SOME EMPLOYEES MAYCHOOSE20%NOT APPLICABLE, WE ONLYOFFER ALLOWANCESE M P LO Y E E M U S T U S E C A R A L LO WA N C E T O WA R DCOST OF A VEHICLE48%22%YESNON 524CAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
COUNTRYP O L I C Y C O V E R A G E O F V E H I C L E R E L AT E DEXPENSESFA C T O R S C O N S I D E R E D W H E N D E T E R M I N I N G C A RA L LO WA N C E A M O U N TC O M PA N Y C O V E R A G E O F F U E L C O S T S F O RE M P LO Y E E S W I T H A C A R A L LO WA N C E5%COSTS OF PROVIDING A VEHICLECOSTS OF MAINTAINING A VEHICLE43%COSTS OF INSURING A VEHICLE27%TAX AND SOCIAL SECURITY CONTRIBUTIONS PAID BY THEEMPLOYEE43%27%INCLUDED IN THE CAR ALLOWANCE27%EMPLOYEE RECEIVES MILEAGE/KILOMETER REIMBURSEMENT50%50%JOB LEVEL/SALARY BAND OF EMPLOYEEEMPLOYEE HAS A FUEL CARD50%Note: More than one response was permitted; percentages may sum more than 100%. 2019 MERCER LLC.25%MAXIMUM ANNUAL SPENDING CAPMARKET COMPETITIVENESSN 235%BUSINESS FUEL ONLYSAM27%ALL FUELPL25%EA L LO WA N C E A M O U N T SVARIES BY EMPLOYEE LEVELN 4425CAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
COUNTRYREIMBURSED FOR ALL BUSINESS-RELATED MILES/KILOMETERS,INCLUDING COMMUTING TO AND FROM THE OFFICE91%REIMBURSED FOR BUSINESS-RELATED MILES/KILOMETERS ONLY55%AMOUNTS PROVIDED AREIN LINE WITH LOCALLYSPECIFIED RATES27%THERE ARE NO LOCALLYSPECIFIED RATES9%AMOUNTS PROVIDED ARELOWER THAN LOCALLYSPECIFIED RATESPL9%MILE AG E /KILOMET ER REIMBUR SEMEN T VER S U SL O C A L S TAT U T O R Y R E Q U I R E M E N T S F O RE M P LO Y E E S W I T H A C A R A L LO WA N C EEREIMBUR SEMEN T FOR MILE AG E /KILOMET ERF O R E M P LO Y E E S W I T H A C A R A L LO WA N C E9%AMOUNTS PROVIDED AREHIGHER THAN LOCALLYSPECIFIED RATESN 11SAMN 18R E I M B U R S E M E N T O F O T H E R V E H I C L E E X P E N S E S F O R E M P LO Y E E S W I T H A C A R A L LO WA N C E11%12%11%12%MAINTENANCEINSURANCEN 44N 4376%ALL11%SOME 2019 MERCER LLC.12%TAX-RELATEDCOSTSN 4476%76%NONE26CAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
COUNTRYA LT E R N A T E T R A N S P O R T A T I O N B E N E F I T SEPERSONAL CAR AND DRIVERREGUL AR ACCESS TO PERSONAL CAR ANDDRIVEREMPLOYEE S ELIG IBLE TO U SE PER S ON AL CARAND DRIVER50%48%N 280%20%N 5MARKET COMPETITIVENESS60%STATUS/SENIORITYLIMITED OR NO AVAILABILITY OFPUBLIC TRANSPORTATION40%EMPLOYEE SAFETY CONCERNSINTERNATIONAL MOBILITY/EXPATRIATE EMPLOYEE50%MANAGEMENT50%PROFESSIONAL NONSALES50%PROFESSIONAL SALES50%Note: More than one response was permitted; percentages may sum more than 100%.L I M I TAT I O N S O F E M P L O Y E E ’ S U S E O F P E R S O N A LCAR AND DRIVERREASONS FOR PROVIDING A PERSONAL CARAND DRIVER60%EXECUTIVEN 81NOSAMYES52%PLHEAD OF ORGANIZATION0%67%0%22%11%BUSINESS USEONLYHANDLED ON ACASE-BY-CASEBASISNO LIMITATIONSOTHERN 5OTHERNote: More than one response was permitted; percentages may sum more than 100%. 2019 MERCER LLC.27CAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
COUNTRYP R E A R R A N G E D E M P L O Y E E T R A N S P O R TAT I O NT R A N S P O R TAT I O N I S P R O V I D E D A S A S H A R E DS E R V I C E A M O N G E M P L O Y E E S ( O N E TA X IT R ANSP OR TS SE VER AL EMPLOYEE S )48%PL78%EREG UL AR PRE ARR ANG ED EMPLOYEET R A N S P O R TAT I O N T O A N D F R O M T H E O F F I C E52%YES11%0%NOVARIES BYEMPLOYEE LEVELN 9N 81NOSAMYESR E A S O N S F O R P R O V I D I N G P R E A R R A N G E D E M P L O Y E E T R A N S P O R TAT I O N25%0%N 81MARKET COMPETITIVENESS17%STATUS/SENIORITY4%LIMITED OR NO AVAILABILITY OF PUBLICTRANSPORTATIONEMPLOYEE SAFETY CONCERNS38%INTERNATIONAL MOBILITY/EXPATRIATE EMPLOYEE8%OTHERNote: More than one response was permitted; percentages may sum more than 100%. 2019 MERCER LLC.28CAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
COUNTRYPA R K I N G S U B S I D I E S48%N 81NOEHEAD OF L NONSALES50%PROFESSIONAL SALES50%N 81Note: More than one response was permitted; percentages may sum more than 100%.SAMYES52%EMPLOYEE S ELIG IBLE TO U SE S UB SIDI Z ED ORF R E E PA R K I N GPLP R O V I S I O N O F S U B S I D I Z E D O R F R E E PA R K I N GC O S T O F PA R K I N G F U L L Y C O V E R E D B Y C O M PA N Y60%N 5YES, FOR ALL LOCATIONS INTHIS COUNTRY 2019 MERCER LLC.0%YES, FOR SOME LOCATIONSIN THIS COUNTRY60%29NO, THE EMPLOYEE COVERSA PORTION OF THE COST40%VARIES BY EMPLOYEE LEVELCAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
COUNTRYP U B L I C T R A N S P O R TAT I O N S U B S I D I E S48%N 81NO0%N 5COMPANY PROVIDES ANNUAL ORMONTHLY TRANSIT PASSES60%EMPLOYEE MAY CHOOSE ANANNUAL/MONTHLY TRANSITPASS OR AN ALLOWANCEEMPLOYEE RECEIVES ANDALLOWANCE TO COVER ORSUPPLEMENT THEIR COSTS40%OTHER 2019 MERCER LLC.E78%EXECUTIVE17%4%PROFESSIONAL NONSALES50%PROFESSIONAL SALES50%N 81Note: More than one response was permitted; percentages may sum more than 100%.BENEFIT COVERS 100% OF PUBLICT R A N S P O R TAT I O N C O S TD E L I V E R Y F O R M AT O F T H I S B E N E F I T60%HEAD OF ORGANIZATIONMANAGEMENTSAMYES52%EMPLOYEE S ELIG IBLE FOR P UBLICT R A N S P O R TAT I O N S U B S I D Y O R B E N E F I TPLC O S T O F P U B L I C T R A N S P O R TAT I O N I SSUBSIDIZED67%0%22%YESNOVARIES BYEMPLOYEE LEVELN 530CAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
COUNTRYWA L K I N G O R C Y C L I N G A L LO WA N C E48%N 81NO 2019 MERCER LLC.EHEAD OF L NONSALES50%PROFESSIONAL SALES50%N 81Note: More than one response was permitted; percentages may sum more than 100%.SAMYES52%E M P LO Y E E S P R O V I D E D W I T H A WA L K I N G O RC Y C L I N G A L LO WA N C EPLWA L K I N G O R C Y C L I N G A L LO WA N C E P R O V I D E D31CAR BENEFIT POLICIES & ALTERNATE TRANSPORTATION — SAMPLE
EPLSAMABOUT THIS REPORT
ABOUT THIS REPORTEThis section provides information on the methods of collecting, collating, and analyzing data for this publication. Below are notes on exceptions and exclusions inthe data and a list of data sources, relevant equations, and currency conversion rates. Readers will also find a glossary of key terms.MET HOD OLO GYTo ensure the confidentiality of all companies that provide data to Mercer’ssurveys, statistics have been “masked” by displaying an endash or “–” whenminimum sample sizes are not met. P50 or 50th Percentile: The data point that is higher than 50% of all otherdata in the sample when ranked from low to high. Also known as themedian. A minimum of three data points are required to report the average andprevalence percentages. Mean or Average: The sum of all data reported divided by the number ofdata observations in the sample. A minimum of four data points are required to report the 50th percentileor median. Prevalence: The percentage of companies that provided a response to aquestion with a defined number of options to choose from. For example,a single response question or a check box (select all that apply) stylequestion.D ATA S O U R C E SSAMTwo primary data sources were used in the creation of this publication:Mercer's 2018 Total Remuneration Survey (TRS) and 2018/2019 Car BenefitPolicies (CBP) survey. These sources have been used to create two sectionsof content for each market. All 85 markets include details on car benefiteligibility and costs and 53 of these markets also contain details on carbenefit policies. In single response questions, the sum of all responses may not equal100% due to rounding. In check box response questions, the sum of all responses will begreater than 100%.
companies may see a car benefit policy — either in the form of a company-provided vehicle or a car allowance — as a key to their employment brand and a major perquisite meant to attract top talent. Indeed, car benefit policies can provide value to a company in a number of ways. F
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