|12 June, 2018

More than half of UAE employees expect salary hike in 2018

Over 66% of respondents believe salaries are either increasing or staying the same.

Middle Eastern Business Tycoons Talking about business prospects in Dubai with Foreign Expats.

Middle Eastern Business Tycoons Talking about business prospects in Dubai with Foreign Expats.

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Professionals across the UAE expect to receive a raise in their salaries in 2018, a new survey by has revealed.

Over 66 per cent of respondents in the UAE believe that salaries are either increasing or staying the same. At the same time, 56 per cent of employees expect to receive a raise in 2018, with 27 per cent expecting a raise of up to 10 per cent, the survey found.

In terms of salary, 60 per cent of UAE respondents claim that their current salary package consists of basic salary with benefits, while 23 per cent claim that it consists of basic salary only. In addition, 17 per cent said they receive a basic salary as well as a commission and benefits. Over 52 per cent of respondents who receive a salary package along with other benefits and/or commission claim that their basic salary consists of up to half of the whole proportion of the package.

"It's no surprise that as the cost of living increases in the Middle East and North Africa region, so do salaries and raise expectations," said Suhail Masri, VP of employer solutions,

Among respondents who believe salaries are increasing in the UAE, 32 per cent attribute it to inflation and a rise in the cost of living; another 31 per cent believe salaries are increasing as a result of good corporate performance and increased profitability; while 25 per cent believe it is due to growth in opportunities and economic growth in their country of residence; and 24 per cent say it is caused by intense competition for attracting and retaining talent.

"Since the beginning of 2018, we've definitely seen an increase in the salaries being offered to students and recent graduates for internships and entry-level jobs," said Sean-Michel Gauthier, CEO of Oliv. "We've always encouraged our employers to offer a fair stipend to cover expenses, compensate for hard work and keep candidates motivated. But salary ranges vary a lot depending on the industry - we see digital and financial sectors doing particularly well."

When it came to the preferred pay structure, 66 per cent of UAE respondents in the survey said they prefer a 100 per cent fixed pay structure, 27 per cent said they prefer a partially fixed pay structure with a variable pay for commissions and incentives, while seven per cent prefer a 100 per cent variable pay structure.

Looking back at last year, 45 per cent of respondents received a salary raise in 2017. Nonetheless, over 56 per cent of respondents from the UAE expect to receive a raise in 2018, with the largest proportion of these respondents expecting a raise of one to five per cent.

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