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Good news for salaries in the UAE

Good news for salaries in the UAE

Salaries in the UAE are expected to increase by 4.6 per cent in 2017 according to Willis Towers Watson’s latest Salary Budget Planning Study.

The study show wages are set to rise by an average of 4.6 per cent in 2017, following an average increase of 4.9 per cent this year.

The inflation rate in the UAE in the past two years has been an average of 4.0 per cent; however, there has been an increase in the pay for employees across all industry sectors.

In 2017, the salary has been projected to increase by 4.6 per cent in the region, in countries such as UAE and Bahrain, while Lebanon will have the highest increase in pay growth of 5.4 per cent, followed by Saudi Arabia and Kuwait at 5 per cent and Qatar 4.8 per cent.

Laurent Leclère, Senior Consultant and Data Services Lead for the Middle East at Willis Towers Watson, said: “There are many factors that affect the employee attraction and retention such as the work environment, the managers they work with, health and insurance programmes etc. The key factor however is the compensation that would also drive the employees’ performance.”

The report provides salary increase budget information for a large selection of economies across the globe, as well as projected inflationary and country GDP movements for the same period of time.

Across Europe, the Middle East and Africa (EMEA), the report highlights countries where real pay differs significantly to the regional average. Lebanon has the highest pay increase at 7.1 per cent, whilst Zambia has the lowest at -13.6 per cent.  For Central and Eastern Europe, Poland is highest with a 3.1 per cent real-pay increase projected for 2016 and at the other end of the spectrum is Kazakhstan at -5.1 per cent.

On a global level the report shows employees in Asian countries are predicted to benefit from some of the highest pay rises with a regional average real-pay increase of 3.8 per cent, followed by EMEA at 1.9 per cent and Latin America at 1.8 per cent. North America has some of the lowest projected increases at an average of 1.6 per cent.


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