10 per cent pay hikes expected for companies in the UAE in 2023

According to a report published by a worldwide recruiting and HR firm, several companies in the UAE intend to raise pay by more than 10 per cent next year.

According to “Salary Guide UAE 2023,” 57 per cent of businesses plan to raise wages in 2023, with 45 per cent of them planning an increase of up to five percent, seven per cent planning an increase of more than 10 per cent, and five per cent expecting to increase between six and nine percent. Twenty three per cent of businesses stated they have no plans to change employee salaries in the coming year.

The study was conducted based on responses from corporate leaders in charge of making crucial decisions at more than 300 organisations across the Gulf.

For 2022, 49 per cent of businesses increased pay, and only seven per cent of them increased wages by more than 10 per cent.

According to the study, the highest paying industry is real estate (Dh252, 000). Legal positions come second (Dh231,000), followed by 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 professionals ( Dh117,000), telecommunication (Dh115,000), supply chain experts (Dh95,000) and sales and marketing (Dh76,000).

According to the international recruitment consultancy, the job market in the UAE had its best year in ten years due to higher-than-expected demand in both the public and private sectors.

Almost 75 per cent of those polled said they planned to give out annual bonuses, according to the study, while only 26 per cent said they had no such plans.

The study also found that 36 per cent of the respondents expect bonuses amounting to a month’s gross salary, while a fifth expect two months gross salary, 10 per cent said three months and three per cent said four months and one percent said five months gross salary as annual bonuses.