UAE jobs: Salary hikes, 6-month bonus planned by some companies next year

The country's job market has enjoyed its strongest year in a decade, with higher-than-anticipated demand across the sectors

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Waheed Abbas

Published: Fri 16 Dec 2022, 3:12 PM

Last updated: Fri 16 Dec 2022, 8:14 PM

Some companies in the UAE plan to increase salaries by more than 10 per cent next year, according to a study released by Cooper Fitch, a global recruitment and HR consultancy.

The ‘Salary Guide UAE 2023’ revealed that 57 per cent of companies expect to increase salaries with 45 per cent of them up to five per cent, seven per cent intend to hike by more than 10 per cent and five per cent of firms likely to boost wages between six to nine per cent in 2023. While 23 per cent of firms said they don’t intend to make changes to employees’ salaries in the next 12 months.

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The survey is based on responses from business leaders responsible for key decision-making at more than 300 organisations across the Gulf.

Overall, it is estimated that salaries will increase by just under two per cent in 2023.

For 2022, 49 per cent of firms increased salaries and seven per cent of them boosted wages by over 10 per cent.

The study revealed that the real estate sector offers the highest salary (Dh252,000) followed by legal (Dh231,000), banking (Dh178,000), investment management (Dh158,000), finance (Dh153,000), HR (Dh147,000), manufacturing (Dh136,000), strategy (Dh131,000), technology (Dh126,000), advisory (Dh126,000), tax experts (Dh117,000), telecommunication (Dh115,000), supply chain (Dh95,000) and sales and marketing (Dh76,000).

The global recruitment consultancy revealed that the UAE’s job market has enjoyed its strongest year in a decade, with higher-than-anticipated demand across the public and private sectors.

“This activity has been fuelled in no small part by the healthy position in which the nation’s government finds itself, as well as its success in incentivising local and international funding for large projects,” said Trefor Murphy, founder and CEO of Cooper Fitch.

Up to 6-month gross salary bonuses

The study found that almost three-quarters of those surveyed reported their intention to issue annual bonuses, compared to just 26 per cent that had no such plans.

As many as 36 per cent of respondents expect the amount to be one month’s gross salary while a one-fifth plan to pay two months’ gross salary, 10 per cent said three months, three per cent said four months, and one per cent said five months as bonuses.

“Employees working for four per cent of the companies surveyed this year can look forward to annual bonuses amounting to a generous six months’ gross salary. The sectors represented in this category include banking, financial services, investment management and consulting,” said Murphy.

-waheedabbas@khaleejtimes.com

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Waheed Abbas

Published: Fri 16 Dec 2022, 3:12 PM

Last updated: Fri 16 Dec 2022, 8:14 PM

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