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Mon 13 Jan 2020 10:42 AM

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20% of Gulf employees received no pay rise in 2019, says survey

Expat packages have changed to a 'more balanced total compensation market-based remuneration', according to a survey from Nadia Global

20% of Gulf employees received no pay rise in 2019, says survey

Rental rates have fallen by 10 to 12 percent across the UAE and that school fees – in Dubai – have been frozen by the Knowledge and Human Development Authority (KHDA).

Approximately 20 percent of UAE employees received no pay increase in 2019, while basic salaries only went up an average of 1.75 percent, according to a survey from recruitment agency Nadia Global.

In its 2019-2020 salary survey, Nadia found that the average staff turnover rose from 8 to 9 percent.

At the same time, for a third consecutive year, inflation outstripped average salary increases at 2 percent, while medical insurance costs rose by 6 to 8 percent.

The report, however, noted that rental rates have fallen by 10 to 12 percent across the UAE and that school fees – in Dubai – have been frozen by the Knowledge and Human Development Authority (KHDA).

In the report, Nadia said that “the continued decline in rental costs and freeze on education [were] the two deciding factors attributed by employers in the remuneration calculations.”

Employment packages, the report noted, have changed from “expatriate type packages” to a “more balanced total compensation market-based remuneration.”

“This has taken effect at a quicker pace than anticipated due to the current economic uncertainties being faced both regionally and globally,” the report said.

“2019 has been a year of challenge, regional conflict, oil price fluctuation, and worldwide trade wars have led to a level of uncertainty which local governments have tried to counter with a number of initiatives including long-term residency visas, as well as, relaxed foreign ownership laws to encourage foreign direct investment and small business growth.”

“With Expo 2020 Dubai, the Saudi 2030 Vision and Aramco IPO, we may expect to see stronger economic growth on the horizon,” it added.

Arabian Business digital magazine: read the latest edition online