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29 March 2024

UAE pay hikes: How much to expect; who'll get bumper raise?

Published
By Shuchita Kapur

Most UAE employees are in for nominal pay hikes next year, much in line with 2015, but certain professionals will get a bigger slice than others for the simple reason they are in high demand and their skills are hard to get by in the country.

According to the new Robert Half 2016 Salary Guide, it is auditors and HR professionals in the UAE who can expect to see the fattest increments coming their way.

“Businesses are actively seeking skilled professionals for new roles and to fill open vacancies which is driving salaries rises well above average for in-demand roles, despite the region’s outlook facing some uncertainty,” says Gareth El Mettouri, Associate Director, Robert Half UAE.

These executives are likely to receive the highest salary increase of 8.9 per cent in 2016 with higher than average pay rises within accounting and finance for roles in large companies (2.9 per cent).

Within the HR function, those in learning and development manager roles are set to receive the highest raise (7.2 per cent).

Starting salaries for professional occupations are expected to see modest rises over the next 12 months, according to the survey.

“As the UAE economy continues to rely on specialist professionals who are able to add value from day one, business need to offer candidates competitive market salaries to attract to the region,” El Mettouri notes.

Across professional occupations including finance and accounting, financial services, information technology, legal, and human resources and administration, salaries are expected to see an average rise of 1.7 per cent.

Within financial services, roles within compliance, private equity, and asset management are set to receive salary raises of more than 3 per cent, with compliance managers set to receive the highest increase of 5 per cent.

The Robert Half 2016 Salary Guide covers finance and accounting, financial services, IT, legal, and HR and administration.

“Hard-to-fill roles are experiencing higher than average pay rises due to the increased competition for these candidates,” El Mettouri added.

A previous salary budget planning study by Towers Watsons, a professional services company, showed that average pay rises for employees in the UAE and the region will be a nominal 4.7 to 6 per cent in 2016.

This, the company expects will outweigh the regional inflation rates, giving employees real increases for their wages. The study primarily covers employees in the private sector.

According to Aon Hewitt, a human resources consultancy, UAE firms projected a 5 per cent increase in pay in 2016, up from the 4.8 per cent projection made for 2015. In terms of actual increases for 2015, the UAE recorded a 4.8 per cent increase, it said.