Half of UAE workers expect pay hike

Even as several recruitment companies and consultants predict a moderate pay hike this year, with some even saying that counter-offers are now becoming the norm, nearly half of respondents to this website’s poll do not see a pay hike coming their way in 2014.

An online poll run by Emirates 24|7 reveals that 47 per cent of the respondents do not expect to get a salary increment this year.

Of the remaining 53 per cent who do expect a hike, believe it will only be moderate increments, and not reminiscent of the heydays when employees had considerable negotiating powers.

Twenty-one per cent of those who see more money coming into their bank accounts at the end of the month expect a hike but only less than 5 per cent.

Next on the list are 20 per cent of the respondents who expect a pay hike of between 5 and 10 per cent. A minority (only 12 per cent) are the most optimistic, expecting a hike of more than 10 per cent.

Since the beginning of this year, different recruitment and executive search companies have predicted salary hikes for employees in line and marginally better than the increasing cost of living.

A general industry survey, published by HR consultancy Towers Watson, said 2014 could well be a year of change for employees’ remuneration in the UAE, to help them foot the increasing bills.

It noted that UAE salary increases are projected to average 5 per cent during 2014 and a significant number of organisations are considering reviewing their housing allowance in the face of rising rents in the country.

The latest GCC Allowances and Benefits Survey conducted by Aon Hewitt also concluded the same. It said that companies across the UAE are recognising the need to introduce new measures and are starting to shift their budget allocation to employee allowances and benefits.

On the other hand, a report from Morgan McKinley suggested salaries will grow by a healthy 6 to 8 per cent in 2014.

But many readers who wrote to this website speak of no changes so far to their housing or education allowances. A reader wrote that his company pays only Dh23,000 per year for housing allowance, which is just not sufficient and there is absolutely no education allowance.

“I do not expect my company to give me anything extra this year,” said another respondent.

[Image via Shutterstock]

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