Financial News

Sorry Year For Salaries In The UAE

Salaries were a problem for workers in the United Arab Emirates as bosses either failed to cough up pay rises or the rises they offered were disappointing.

Close to half of workers did not secure any salary hike in 2015, while a third were dissatisfied with the amount their employers offered.

Only one in four workers picked up a salary increase that matched or exceeded the rate of inflation.

For 52% of workers, the rise was less than the increase in the cost of living.

Two thirds of professionals – of whom many are expats – felt their salaries were lagging industry averages for their skills and qualifications.

But 36% were happy with their pay rises and 10% even considered their salary was fair considering their workplace contribution.

Rising cost of living

The industries at the top of the pay league in the UAE are oil, gas and petrochemicals; banking and finance followed by aviation.

Most workers are hoping their companies will look after them better in 2016.

Pay increases are expected by 55% of workers – and a third want to see their salaries rise by at least 15%.

Not everyone is so optimistic. Out of the rest, 28% are not expecting any pay rise, while 16% are unsure whether they will receive any extra cash.

As a result, 58% want to find a better paying job within a year and 12% are willing to leave the UAE for another Middle East country if the right offer comes along.

One of the reasons so many workers are seeking pay rises is the rising cost of living in the UAE.

Salary and expectations mismatch

Most workers (80%) say they are paying higher rents, more for food and drink (57%) and utility bills (55%).

UAE workers can still save money despite a pay squeeze and higher living costs.

The survey, by jobs site Bayt and market research firm YouGov, revealed 29% of workers do not have enough money to put aside as savings each month, but 60% of expats have money to remit home.

“This survey is very revealing about the way workers think about their employers,” said Suhail Masri, a Bayt vice president.

“The salaries that are available and worker expectations are obviously mismatched and both sides have to find a compromise.”

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