Abu Dhabi: Salaries in the United Arab Emirates (UAE) are expected to increase by 4.5 percent in 2024 due to the strong performance of non-oil sectors.
This came in a new survey released by Cooper Fitch, a global recruitment and HR consultancy under the title ‘Salary Guide UAE 2024’ on Wednesday, December 20.
According to a survey, 53 percent of companies plan to increase their employees’ salaries next year. More than 39 percent plan to increase salaries by up to 5 percent, 6-9 percent by almost one in ten, and 5 percent by 10 percent or more.
Over 21 percent of companies anticipate lowering salaries in 2024, despite the surge in demand for top talent.
More than 25 percent of employers have no plans to increase their employees’ salaries in the upcoming year.
“A larger proportion of UAE-based organisations grew their headcount in 2023 than in 2022, and more than half of this year’s respondents intend to increase remuneration in 2024. This is positive news for job seekers in the Emirates as greater demand for talent typically results in higher salaries,” Trefor Murphy, founder, and CEO of Cooper Fitch said.
Bonus
A survey reveals 71 percent of companies plan to issue annual bonuses based on their organization’s financial performance in 2023, with 29 percent having no such plans.
35 percent of firms plan to issue bonuses, with 16 percent expecting to pay a basic salary of one month, 17 percent expecting two months, 13 percent three months, 4 percent four months, and 1 percent five months.
Accounting, chemicals, consumer goods, and hospital and healthcare employees can expect bonuses of up to a six-month basic salary.
The financial services, consulting, and IT industries are the only sectors that do not intend to pay bonuses.
“While salaries continue to play a crucial role in talent retention, factors beyond fixed remuneration – such as annual bonuses and the ability to work remotely – are playing an increasingly important role in the UAE’s job market,” said Jack Khabbaz, managing partner and CEO of public sector advisory at Cooper Fitch.
Talent
A survey shows that 27 percent of respondents anticipate a talent shortage in the coming year, highlighting the importance of effective talent acquisition strategies.
The most significant talent gaps identified were’management’ and ‘leadership’, accounting for 16 percent and 14 percent of responses, respectively.
Top ten skill shortages
- Management
- Leadership
- Analytical Skills
- Project Management
- Artificial Intelligence
- Engineering
- Software Development
- Sales
- Finance
- Data Science
Which sectors will raise the salary in 2024?
| Sector | Minimum salary | Maximum salary |
| Real estate | 132,000 dirham (Rs 29,89,853) | 263,000 dirham (Rs 59,57,056) |
| Advisory | 94,000 dirham (Rs 21,29,135) | 132,000 dirham (Rs 29,89,853) |
| Banking | 149,000 dirham (Rs 33,74,786) | 186,000 dirham (Rs 42,12,821) |
| Human Resources | 109,600 dirham (Rs 24,82,393) | 154,000 dirham (Rs 34,88,034) |
| Investment management | 88,000 dirham (Rs 19,93,256) | 165,000+ dirham (Rs 37,37,355) |
| Legal | 110,000 dirham (Rs 24,91,345) | 241,000 dirham (Rs 54,58,803) |
Salaries in 2023
81 percent of UAE companies increased or maintained employee salaries in 2023, while 54 percent raised them due to increased talent demand, Cooper Fitch survey said.
Around 8 percent of firms increased salaries by more than 10 percent, indicating a focus on talent retention in specific sectors.
