The average salary in the UAE has increased by about 3.8 percent, notwithstanding the crisis posed by the coronavirus disease (COVID-19), a study on over 500 companies in the country revealed on October 19.
According to the data released by to global human resources consulting company Mercer’s Total Remuneration Survey, the overall market in the country experienced positive salary inflation despite 10 percent of the companies being forced to temporarily implement pay cuts.
“It is very encouraging to see that despite the economic challenges, a significant number of UAE employers have increased salaries in 2020,” Ted Raffoul, Mercer’s career products leader for Mena, said.
The workers in the country’s pharmaceuticals and health care sectors saw the salary increase at 4.5 percent, followed by those working in consumer goods at 3.5 percent, high-tech at 3 percent, and the energy sector at 2.6 percent. The study also forecasts the first two sectors to see the sharpest rise in salary percentage, at 4.5 and 3.8 percent, respectively, while the energy sector could see the lowest increase at 1.9 percent.
The Mercer data also forecasted that the salaries in the country will further rise in 2021, at an average of 4 percent across the general market.
“Although uncertainty continues into 2021, UAE companies are making progress towards enhanced business strategies, with a majority of them expecting new working arrangements to continue to evolve towards permanent policies,” Raffoul added.
In addition, the survey noted that hiring is once again picking up in some sectors, including logistics and e-commerce.
“Even though we expect uncertainty to span into 2021, the Total Remuneration Survey results promise a more optimistic new year as companies are increasingly reporting positive hiring sentiments compared to those indicated at the onset of the COVID-19 pandemic,” The National quoted Carolina Vorster, Mercer’s workforce products leader for the Mena region, as saying.
SEE ALSO: ROAD TO DREAM JOB: Experts say these sectors are actively hiring now in the UAE amid COVID-19
