Overall salaries projected to increase by 4.8% in the UAE across all industries in 2019, with the strongest surge likely to come for those employed in non-energy industries.
Salaries across all sectors increased by 4.5% in 2018, with the highest increase in the life sciences industries (5%), according to Mercer, in its annual Total Remuneration Survey.
Other sectors that are expected to see a strong increase include consumer goods and high-tech industries, with real wage growth (salary increase minus inflation rate) is also expected to steadily rise in the region.
The energy industry, which was previously the highest paying has now seen a downward shift. While it is projected to perform below the market, with an expected increase of 4%, it’s the highest increase rate seen since 2015 for the industry.
“The GCC is a market that is continuously progressing and thriving. With the UAE’s vision of diversifying away from oil, we’re seeing new trends in industries with regards to employee compensation, hiring and talent,” said Ted Raffoul, Career Products Leader, MENA at Mercer.
“Sectors such as the High Tech and Life Sciences industries have evolved due to the growing population and the need for digital transformation across the entire market, which is generating more employment opportunities and salary increases.”
The overall hiring outlook in the UAE is positive with close to 50% of companies looking to increase their headcount and 45% looking to maintain headcount.
Additionally, 3% of companies have stated salary freezes in 2018 compared to 10% in 2016.
The survey also looked at pay parity (in terms of annual total cash) at different levels of management in the region. The ratio of salary difference rises steeply (up to 10 times) as employees reach senior level positions in the UAE, compared to the average of 5 times in developed markets.
Source Credit: Arabian Business