UAE salary: Why you should expect 5% rise... or easily find new job

UAE job market is upbeat with companies increasing salaries and planning to hire staff.

Above average pay rises and low inflation rates give UAE workers higher purchasing power.

Firms are giving their employees an average wage increase of 5.2 per cent this year, bucking the global trend for limited pay rises, reveal a Mercer’s survey that covered more than 230 companies across various industries.

The highest salary increases were found in the energy and life sciences sectors, although all industries had broadly comparable increase figures.

The survey also found that although pay rises in the UAE were in-line with Qatar and Saudi Arabia at 5 per cent 5.6 per cent respectively, inflation in these countries – excluding housing costs - is higher than the 1.6 per cent estimate in the UAE. This gives UAE workers greater purchasing power.

Nuno Gomes, Mercer’s Information Solutions leader for the Middle East, says, “Purchasing power has been rising more quickly due to more controlled inflation in the country relative to the rest of the GCC.”

Mercer’s 2013 report predicts that salary increases for UAE employees in 2014 will remain close to this year’s figure at around 5 per cent. It suggests an increase in long-term incentives in the region, with pay-outs that occur over a longer period of time and which emphasise sustained performance and employee retention.

Hiring

The survey also revealed that 68 per cent of the organisations polled intended to increase their personnel levels over the year, compared to 60 per cent in 2012.

“Overall, multinational organisations with operations in the UAE still perceive the country as a key growth region. This is exemplified by the fact that organisations intend to hire more staff over the coming year as well as the fact that voluntary turnover is higher than it used to be last year,” said Gomes.

Mercer’s poll this year recorded an increase of 8 per cent on housing allowance, slightly higher than the 6.7 per cent increase recorded in its 2012 survey.

Bonus

However, bonus pay-outs have declined in comparison to 2012, on average by almost 20 per cent in 2013.

“Keep in mind that pay-outs in 2013 are based on performance in 2012. With the increased activity we’re seeing in 2013 and the continuous growth of the UAE economy, we should expect bonuses to pick up in 2014,” Gomes added.
 

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