GCC 2018 Salary Raises: The Good News and the Bad News

Published September 13th, 2017 - 06:00 GMT
Good news: You get a raise next year. Bad news: It's not much. (File photo)
Good news: You get a raise next year. Bad news: It's not much. (File photo)

Salaries at some companies in the UAE are still forecast to increase next year despite the current economic climate, according to a new study by global professional services firm, Aon.

In its region-wide survey covering 600 multinational and local organisations, Aon found that employers in the UAE are expected to grant an average wage increase of 4.3 per cent, the second-highest in the Gulf Cooperation Council (GCC) region.

Among the countries surveyed, Saudi Arabia and Kuwait are expected to be the most generous next year, at 4.5 per cent.

Oman employees will also likely get an increase of 4.3 per cent. Workers in Bahrain, on the other hand, are expected to get the lowest salary adjustment, projected to be around 4 per cent.

Aon’s research is said to be the largest of its kind in the Gulf region. It also found that actual wage adjustments granted this year were lower than predicted, owing largely to the slow economy and low oil prices. Saudi Arabia gave away the biggest actual increase at 4.4 per cent.

Within the UAE, actual salary increase this year stood at 4.3 per cent, lower than the 4.6 per cent forecast. Saudi Arabia gave away the biggest actual increase at 4.4 per cent

Employees in the life sciences sector enjoyed the biggest increase in paycheque (5.1 per cent), as well as those in the hi-tech industry.

Workers in the construction, engineering, transportation, logistics and shipping services sectors suffered the lowest salary increases at an average of just 2.4 per cent.

For next year, Aon said there is a chance that workers will see an upside in the actual salary increase, as the economic conditions are improving.

The firm noted that government spending has increased, while oil prices are stabilising. And while it can add to rising inflation, the implementation of 5 per cent value-added tax (VAT) may also boost gross domestic product (GDP) growth.

By Cleofe Maceda

 


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