Expat salaries across the Gulf States are expected to rise by nearly 5% by the end of 2015, says a new report from industry experts.
The figures are slightly better than this year’s average 4.6% pay increase, according to a survey by human resources consultancy Aon Hewitt.
Pay increases are likely to be higher in Saudi Arabia and Oman, where they could hit 5.4% but still be slightly less than this year’s increase.
Bahrain expats are likely to see the lowest increases at around 4.5%.
Another recent study reckons expat salaries across the Gulf have dropped an average 2% in the past 12 months.
“Companies are tending to look for staff with similar qualifications and experience as expats, but those from countries where they expect a lower wage for doing the same job,” said a spokesman.
“Employers can keep wages down because they have an overflow of talent to choose from but need to balance this with salary packages that lure expats to stay.”
Benefit packages
Expats can expect Gulf employers to outsource service benefit packages, according to a survey by consultancy SEI Investments.
More than a third of companies told researchers that they were thinking about letting a specialist provider manage expat services.
Many employers are stressed by the costs of hiring expats and try to keep funds down to reduce the end of service benefit lump-sum paid in most countries.
“The economies of the Gulf States are doing well and that means a good demand for talented recruits and competitive wages,” said a SEI spokesman.
“But many companies want to hold on to the talent they have and that means putting together remuneration packages to attract and retain the best is challenging.”
Working visa worries
Saudi building industry employers are protesting about new time limited visas for expats.
The Jeddah Chamber of Commerce and Industry claims the new rules will see a shortage of experienced trades and hit their businesses.
From October 25, firms employing more than their quota of expats face fines, while workers without the right visas could be deported.
Working visas will also be limited to a four-year term.
“Businesses are worried the best expat workers will find jobs in other countries where their stay is not limited,” said a spokesman. “This could lead to a skills shortage and a slowdown in construction that could damage the economy.”
