UAE employees in this sector will get a 10% pay hike; how much will you get? – Emirates 24/7

Marginal pay hike is on the back of falling oil prices and is less than what was predicted at the end of 2014.. (File)
Salary hikes for most UAE employees are expected to be nominal this year, but there are certain sectors where staff is likely to get bigger increments than others.
According to a new report by, those working in the construction sector are expected to get the highest average salary increase at 10 per cent, followed by logistics with a 7.7 per cent hike.
A booming retail sector is expected to dole out an average increment of 6.8 per cent whereas employees in healthcare are expected to get a 6.3 per cent salary hike this year.
Surprisingly, employees in the real estate sector stand to get considerably bigger pay hikes at 6.2 per cent compared with those in some of the other, more stable sectors such as telecoms & IT at 5.9 per cent, education at 5.8 per cent and banking at 5.6 per cent.
The lowest on the list of the sectors is hospitality with a 5.5 per cent salary increase and oil & gas at a 5.4 per cent pay hike.
Overall in the UAE, the report suggests an average pay hike of 7.1 per cent, which is higher than previous predictions made by other recruitment firms and online job portals.
For example, the most recent previous report by Towers Watson maintains that UAE and GCC employees are set to get a pay rise of an average 5 per cent in 2015 and going forward, this too is expected to dip to 4.8 per cent in 2016. This marks a return to 2014 when the pay hikes were the same.
Morgan McKinley’s 2015 UAE salary guide also predicts a 5 to 6 per cent pay hike, which is lower than anticipated earlier due to falling oil prices.
However, Gulf Talent seems more upbeat in its predictions not just for the UAE but the overall region as well.
Within the GCC, the report says private sector salaries are forecast to rise at a similar pace in 2015 compared with the previous year.
Pay rises across the region averaged 6.7 per cent in 2014, the highest average increase since the financial crisis, and are projected to accelerate further in 2015 to 6.9 per cent.
This is driven by the competition for talent and rising cost of living. At the same time, the strength of the US dollar, to which most Gulf currencies are pegged, is helping make Gulf salaries more attractive for expatriates, reducing upward pressure on wages.
According to Gulf Talent estimates, Qatar is expected to see the highest average pay increase at 8.3 per cent, driven by rising cost of living and the growing need to attract talent for completion of projects. Employers in Oman are forecast to give the second highest average pay rise at 7.2 per cent.
Saudi Arabia along with the UAE are next, with expected average pay rises of 7.1 per cent each, followed by Bahrain at 7 per cent. Kuwait is expected to see the lowest average pay rise at 5 per cent this year.
The report is based on an online survey of 600 employers and 22,000 professionals, as well as 60 interviews with executives and HR professionals, conducted during the period December 2014 to April 2015.

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