If you were hoping for a salary increase in Dubai or the UAE this year, we have some bad news for you.
According to Informa’s new Compensation and Benefits Trend report, over 10% of Gulf companies expect salary freezes this year.
And of the companies that do expect to hand out pay increases, many won’t be upping salaries by that much. The report said that 20.96% companies are expecting to give salary increases of 3.5% or less.
Some companies even expect to reduce employees’ wages – 3.36% told Informa that they will likely reduce salaries for workers.
And some are considering adjusting their healthcare provision packages or wellness progress, which might affect those who are supported by their company.
Not only that, the implementation of VAT at the beginning of the year is ‘adding caution’ to the compensation and benefits landscape, Informa said.
However, there is some good news; 58.58% of companies said they won’t consider VAT when deciding salary increases, and 20.96% said they still haven’t decided about the impact of VAT.
In 2017, salary increases were better than previous survey respondents had predicted. For example, 15.88% of companies gave increase of 4% or more, which was double the amount they expected.