By Elsa Baxter
Recruitment experts say average salary has fallen in the first half of year as firms cut costs.
Employees across the UAE have seen their average salary cut by between 26 to 30 percent, a recent survey has found.
The salary survey by Emirates Business showed employees have felt the pinch from the global financial crisis during the first half of this year as businesses reduce wages in an attempt to cut costs.
The survey found that 65 percent of the 20 top officials with leading recruitment agencies believe average salaries have dropped by 26-30 percent.
Twenty percent said the drop was between 11 and 20 percent, while 10 percent said it was less than 10 percent.
Five percent of participants said average wages were cut by 40 percent.
"Cuts in salaries reflect the drop in rents and overall inflation. It is more important to consider what remains in the pocket than what one takes home," a recruitment expert in the banking sector told the paper.
While the regional head of an international recruitment firm, told the paper: “It is not possible to generalise for all salaries. Senior executives are paid a package and not just a salary. The package was impacted, mostly including the decrease in accommodation cost. Some of the benefits also decreased.
“Increased competition led to hiring very qualified individuals at normal remuneration at the market levels. So one would probably say that it is the quality that has been improved, instead of saying that the cost for the company [or the salary] has decreased.”