Companies across the UAE are predicting an average salary increase of five percent in 2014, according to latest figures released by Aon Hewitt.
The company said in a statement that the figure is in line with forecasts made for 2013 and 2012, which were 5.1 percent and 5.2 percent respectively.
Aon Hewitt said the wage rises indicated "economic stability and a continued confidence in the country's business environment amongst organisations in the UAE".
Across the GCC, companies are predicting an average salary increase of 5.5 percent for 2014, with Saudi Arabia-based companies giving the highest salary increase projection of six percent.
Kuwait and Oman firms estimated a 5.6 percent salary growth, similar to the 2013 predictions, while companies in Bahrain forecasted 5.2 percent - an increase on last year's 4.7 percent projection.
Based on data from more than 500 organisations across the Middle East, including 180 in the UAE, the report showed there was a clear correlation between performance and salary increases.
Figures showed that a 7.2 percent salary increase was given for those 'far exceeding expectations' compared to a 0.1 percent salary increase for employees that 'did not meet expectations'.