New research from professional services company, Towers Watson, reveals that employees in the UAE can expect average pay increases of 5% in 2014. With inflation expected to be running at 2.5%, this means employees can expect to see their disposable income increase by 2.5% above the cost of living. The results show healthy pay rises across the Middle East with salary increases in Kuwait, Oman, Saudi Arabia, Bahrain and Qatar all between 5% and 6%.
Billy Turriff, Business Leader for Data Services & Technology at Towers Watson, said: “UAE pay awards are broadly in line with other countries across the Gulf and with the lowest anticipated inflation in the region, real income rises in the UAE are predicted to be second only to Kuwait.”
Projected pay increases by GCC countries in 2014:
Towers Watson expects annual housing allowances to be closely monitored by companies in the UAE in 2014 to ensure levels remain competitive following significant increases in rental costs in the past year. For the past two years housing allowances for executives have increased by 9% while management level employees received increases of 5% and professionals 2%, according to Towers Watson research.
In a poll of HR professionals attending Towers Watson’s recent Data Services General Industry Forum, 40% stated that they had recently reviewed their employee housing allowance policies.
“2014 will be challenging for organizations as they will need to balance their ability to recruit and retain the best talent, whilst also ensuring remuneration costs do not exceed company budgets,” said Turriff.
“In a fast moving and rapidly growing economy such as the UAE, circumstances change quickly and companies often find their pay policies out of date if they are not monitored closely and refreshed regularly.”
About Towers Watson
Towers Watson (NYSE, NASDAQ: TW) is a leading global professional services company that helps organisations improve performance through effective people, risk and financial management. The company offers solutions in the areas of benefits, talent management, rewards, and risk and capital management. Towers Watson has 14,000 associates around the world and is located on the web at http://www.towerswatson.com.
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