By Andy Sambidge
Hay Group survey says similar rise expected next year; banking sector staff best paid
Salaries in Kuwait increased by five percent on average over the last 12 months, according to global management consultancy Hay Group.
Bonuses in 2011 were seven percent higher compared to 2010, according to Hay which analysed data for more than 100 organisations in Kuwait and more than 30,000 employees.
Its study included data from both national and multi-national companies from major sectors including chemicals, banking, retail, automotive and FMCG.
Basic pay increased by five percent while participating organisations forecast an increase of a further five percent over the next year.
Hay Group's Panos Sotiropoulos said: "Pay rises are tracking inflation meaning employees see no significant reduction in their buying power.
"Of course this varies from sector to sector and according to nationality with Kuwaiti nationals being paid above the general market."
He said the banking sector paid 60 percent above the market average, a trend Hay sees to some extent across the GCC.
He added: "Kuwait's drive to recruit nationals into the workforce is having an impact on pay levels with nationals being paid an average of 24 percent above the general market. At the executive level nationals are paid 45 percent more than expatriate workers."
At the lower levels, the disparity is smaller with Kuwaitis receiving an average of 20 percent more than expatriate workers, the Hay study showed.
This trend contrasts with other GCC markets including the UAE and Qatar where graduate salaries are significantly higher than the average because of the pressure to recruit graduate nationals, the study added.