Nearly half of the companies in the UAE have budgeted to pay higher salaries to their employees considering the increase in inflation rates, a study has revealed.
A recent survey conducted by British insurance company Aon revealed that about 49 percent of companies in the UAE have already considered during their annual pay reviews this year an increase ranging between 5 and 6 percent. Meanwhile, 68 percent of institutions stated that they are currently reviewing their annual salary budget.
Companies that participated in the survey included the Prime Minister’s Office, Majid Al Futtaim, Abu Dhabi Investment Authority, Abu Dhabi Global Market, DP World, Beeah Group, Mubadala, Mondelez, Microsoft, and Airbus, among others.
The actual and budgeted amount for regular pay increases for a majority of companies in the UAE ranges from 2 percent to 6 percent, the survey revealed.
According to the survey, 14 percent of companies plan to review wages in the middle of the year. Of those, 21 percent anticipate a 5 to 8 percent increase, while 24 percent anticipate this year an increase of more than 9 percent. Moreover, 35 percent of companies operating in the UAE expect a 2 to 4 percent wage increase in 2023.
In addition, the report highlighted that companies are seeking to increase housing and transportation allowances for employees as part of the wage revision, closely followed by education allowances. Furthermore, 66 percent of UAE employers stated that the increase in housing allowance would apply to all employees.
