This year in 2023, UAE employees can expect a salary hike ranging from 10-20% across various sectors seeking inflation and some other factors.
Dubai is a significant business and tourist hub in the UAE, offering various job opportunities across various sectors. The city is home to several large multinational companies and a popular location for start-ups. There are also many job opportunities in Abu Dhabi, the UAE capital, and another major business center. However, in recent times, the job market has been seeking a shortage of qualified professionals who are expected to match the expected job requirements.
According to a recent survey, it is expected that employees in the United Arab Emirates (UAE) will receive a salary increase of around 10% in the year 2023. The survey, conducted among HR professionals and managers in the country, found that most companies plan to increase salaries to retain top talent and attract new employees.
Employees Expecting a Salary Hike
As per the HR and recruitment industry, there is a high demand for salary increases, and employees expect a hike in 2023. The employees who are already employed with the companies and are now looking to switch jobs expect around 20-25 percent of a hike as per the norm, while existing workers working in various role demand around 15% of the hike. Seeking the market trend, a 10% increase in salary is expected in UAE across various sectors.
Change in Employee Expectation Regarding Job Offers
The employees in UAE are more focused on grabbing job offers which are offering a balanced working life, ensuring a better work-life balance in job profiles. Since 2008, employees have not expected any higher salary hikes, but after covid-19, it is the first time the market is set to increase its expectation to a 10% hike in 2023.
The companies in UAE are also finding it tough to match up to the skillset profile of new hires, and they expect to retain talent while assuring them of their expectations of salary hikes. This will result in a competitive salary sphere in the job market.
How Inflation is Impacting Salary Rise
The cost of living is constantly on the rise, and rent and petrol prices are significantly increasing, which is resulting in inflation in the UAE. The employers also have to review such aspects, ensuring housing and transport allowances for employees influencing the salary hike in 2023.
The Salary Rise depends upon numerous factors, and due to the growing influence of inflation on rising living costs, employees and employers are both keen to revise salary slabs of employees in various sectors like HR, Marketing, Real Estate, Infrastructure, IT, Construction, Banking, Legal, etc.