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Discuss this article (16 Comments)Should the GCC impose a pay rise cap to slow inflation?
by ArabianBusiness.com staff writer on Sunday, 28 October 2007
Inflation across the GCC is running at an all time high, and next month a large number of employers will embark on their annual pay reviews.
If companies offer their workers pay rises above inflation, then more money will be circulating the system, adding to further inflationary pressures.
Is now a good time for GCC governments to get tough and restrict pay increases on the public and private sector to below current inflation rates?
Have your say here...
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
wheres the equation?
Posted by Anjli, Dubai, UAE on Sunday 11 November 2007 at 11:00 UAE time
increasing EXPENSES + reduced income NOT= reduced inflation
as far as my memory goes,incomes have never appeared to be on the plus side of the scale relative to expenses in the emirates, and at the same time although incomes have been tight inflation has always risen ..... accelerated rise in the tertiary market is a result of combination factors; pay-rise cap cannot curb inflation because it has simply not been a determinant in the first place.
Posted by Anjli, Dubai, UAE on Sunday 11 November 2007 at 11:00 UAE time
increasing EXPENSES + reduced income NOT= reduced inflation
as far as my memory goes,incomes have never appeared to be on the plus side of the scale relative to expenses in the emirates, and at the same time although incomes have been tight inflation has always risen ..... accelerated rise in the tertiary market is a result of combination factors; pay-rise cap cannot curb inflation because it has simply not been a determinant in the first place.
iT'S ABOUT TIME!
Posted by Reema, Dubai, UAE on Wednesday 7 November 2007 at 10:00 UAE time
Why should Western exptriates make 5 times more in the UAE than in the UK, whilst other expatriates should settled for only twice the salary they make in their countries. I am talking about knowledge workers and senior level management here. Why should these Western expatriates enjoy their lives and save and the others can't? This status quo has to change asap. As for the laborers they deserve more than what they currently make for they put their sweat and blood into the work they do.
Posted by Reema, Dubai, UAE on Wednesday 7 November 2007 at 10:00 UAE time
Why should Western exptriates make 5 times more in the UAE than in the UK, whilst other expatriates should settled for only twice the salary they make in their countries. I am talking about knowledge workers and senior level management here. Why should these Western expatriates enjoy their lives and save and the others can't? This status quo has to change asap. As for the laborers they deserve more than what they currently make for they put their sweat and blood into the work they do.
Pay rise cap
Posted by Rohit Raghavan, Dubai, UAE on Wednesday 7 November 2007 at 08:00 UAE time
One thing i dont understand in UAE- any problem faced authority first think of hitting the people back first.The pegged Dirhams against Dollor and inflation are the real root problems and salary hike cap is not the solution.This inflation is leading to high cost of living in UAE.Fall of value of Dollor has also effected the people especially for indians as Indian rupees is strenghtening.People in UAE is now struggling to save for future.Andalso no companies will give pay rise unless and untill they really want to hold the employer back.So let the deserving people get the hike.Look out ways to control inflation and hitting on ordinary peoples head is absolutly not the solution.
Posted by Rohit Raghavan, Dubai, UAE on Wednesday 7 November 2007 at 08:00 UAE time
One thing i dont understand in UAE- any problem faced authority first think of hitting the people back first.The pegged Dirhams against Dollor and inflation are the real root problems and salary hike cap is not the solution.This inflation is leading to high cost of living in UAE.Fall of value of Dollor has also effected the people especially for indians as Indian rupees is strenghtening.People in UAE is now struggling to save for future.Andalso no companies will give pay rise unless and untill they really want to hold the employer back.So let the deserving people get the hike.Look out ways to control inflation and hitting on ordinary peoples head is absolutly not the solution.
Pay Hike
Posted by Sid, Dubai, UAE on Tuesday 6 November 2007 at 22:00 UAE time
Expats who has come here agreeing to a certain pay are trying to meet their ends very hard because expenses have sky rocketed. People are in debts every where, multiple bank loans, credit cards etc. at least the Basic Salary to be increased by 20% without conditions.
Posted by Sid, Dubai, UAE on Tuesday 6 November 2007 at 22:00 UAE time
Expats who has come here agreeing to a certain pay are trying to meet their ends very hard because expenses have sky rocketed. People are in debts every where, multiple bank loans, credit cards etc. at least the Basic Salary to be increased by 20% without conditions.
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