UAE Employees Set for Salary Hike in 2024 - Find Out Your Potential Increase Now!

Salaries in the UAE are forecasted to outpace the inflation rate this year, driven by a surge in demand for skilled professionals and overall economic growth.

According to Mercer, a global human capital consultancy, the average salary in the UAE is anticipated to rise by 4%, surpassing the 2.3% increase in inflation. The Mercer Middle East Total Remuneration Survey for 2024 indicates that employees in energy companies can expect a slightly higher salary hike of 4.3%, while those in consumer goods firms may see an average increase of 4.1%. Similarly, employees in life sciences and high-tech sectors are likely to experience around a 4% salary hike.

In 2023, the average salaries across all industries in the UAE saw a 4.1% increase.

Andrew El Zein, principal for Careers in the MENA region, notes that while there is stability and growth in the UAE job market, the rising cost of living, particularly due to increased rents, remains a significant concern for employees.

Despite the escalating costs, the UAE continues to offer ample opportunities and remains attractive for job seekers, with a plethora of local and multinational firms in the market. El Zein emphasizes the need for companies to focus on retaining talent amidst intensified competition both locally and regionally.

Regarding Emiratisation, there's a growing competition among private sector organizations to attract Emirati talent, particularly within the segment of Emirati women, which represents a large untapped workforce.

According to the Mercer Middle East Total Remuneration Survey for 2024, 16.3% of UAE firms plan to expand their workforce, while 7.8% intend to reduce it. The majority of companies (75.9%) have no plans for significant changes in their workforce.

The survey also suggests that the entire GCC region will witness salaries surpassing inflation this year, while other parts of the region struggle to keep up with the Gulf states' robust economic performance. Additionally, a portion of UAE firms anticipates fluctuations in turnover rates for 2024, with 3.8% expecting an increase and 11.4% foreseeing a decrease.