Companies in the Middle East are gearing up to raise salaries by an average 5.5% during the next 12 months.
The figures come from research across the Gulf Co-operation Council countries by recruitment firm Aon Hewitt.
The study shows that employers have confidence in the economic and political stability of the region and that companies are seeking to attract and retain the best talent, said the recruiter.
The salary data was collected from more than 500 businesses and organisations across the region.
Saudi Arabia is set to offer the best salary increases at average 6%, reports the survey.
Pay surges in Bahrain
Salaries are keeping pace with the expected growth of Saudi Arabia’s economy, which is predicted to hit 5.3% in 2013.
Last year, wages in the kingdom increased by 5.8% in line with forecasts.
“The salary forecast has been a good barometer for the region over her past couple of years,” said the firm’s spokesman Robert Richter. “Our predictions lined up pretty well with actual salary increases when we look back.”
Expats in the United Arab Emirates can expect the lowest salary increases a 5%, but this is still in line with last year’s 5.1% rise, which Richter explains shows job and salary stability in the nation.
Salary hikes in Oman and Kuwait are expected to remain around the 5.6% level, while those in Bahrain show a jump from 4.7% last year to a predicted 5.2% next year.
Linking performance and bonuses
“Linking performance to pay is not uncommon in the region, but we are suggesting organisations pay a larger bonus for rewarding workers who hit or surpass their targets,” said Richter. “But salary rises are not only about meeting targets.
“Employers have to think about the person they want to employ and how much that talent is worth to them. They also have to factor in inflation and promotions to make an attractive package.”
Last year’s salary predictor for the region suggested a 5.3% average increase across the region. The actual figure came in at 5.4%.
The survey calculates the averages by taking the mean of expected salary increases.
Gulf Co-operation Council – Predicted salary increases 2014
| Country |
Predicted Salary Increase 2013 |
Predicted Salary Increase 2014 |
| Bahrain |
4.7% |
5.2% |
| Kuwait |
5.8% |
5.6% |
| Oman |
5.6% |
5.6% |
| Qatar |
5.6% |
5.6% |
| Saudi Arabia |
5.8% |
6% |
| UAE |
5.1% |
5% |
| Average |
5.4% |
5.5% |
Source: Aon Hewitt
