Salaries in the UAE to rise by 4.5 percent in 2020

Rate this post

As you probably know, the UAE has been always known as a country with highest salaries. The salaries offered by this country to the employees are not only the highest in the region, but also they are considered high in the world. It is interesting to note that the salaries in the UAE even increase yearly or at least on a regular basis.

According to the global consulting firm Mercer’s remuneration survey, salaries in the UAE will increase by 4.5 percent in the year 2020. The life sciences industries are expected to rise at 4.6 percent.

The forecast has showed different results for different industries. However, based on the survey results, life sciences and high-tech industries are likely to show the strongest push.

Salaries in the UAE to rise by 4.5 percent in 2020

On the contrary to this, the lowest increase will be in the energy industry. The salaries in this industry will increase by 3.7 percent in 2020. However, it was 3.6 percent in the year 2019.

According to Mercer, the highest level of increase in salaries belong to executives and managers. Actually, it will be notably higher than other employee levels showing the importance of leadership skills.

Ted Raffoul, Career Products Leader, Mena at Mercer, has said that increasing salaries in a large segment of UAE employers is very encouraging. This shows that the economy of the UAE is resilient and optimistic. Also, it shows that the UAE is always looking to develop the workforce through progress in different sectors. The rise in the salaries is not only restricted to annual salaries, but also the government has long-term incentives in mind.

Besides, he added that introducing the enhanced employee benefits in DIFC has been one of the most important steps of government. It help companies attract and retain those talents needed to improve different sectors in the country and the region.

Also, it should be said that there has been increase in voluntary turnover to over seven per cent. It is the sign of a job market which is more active now.

Salaries in the UAE to rise by 4.5 percent in 2020

According to Mercer, the UAE has one of the lowest rates of unemployment in the region.

The survey has revealed that the total hiring outlook of the UAE is also positive. To be more precise, 45percent of the respondents plan to increase their headcount, while 52 percent of them plan to keep headcount in 2020.


In the UAE, the survey was done on 500 organizations in retail and wholesale, manufacturing, services, chemicals, life sciences, energy, high tech, and other industries.

Raffoul has said that there are few positions in the UAE leading by women and it is concerning. The situation gets worse when we know that some of roles held by women will get obsolete one day. It is mainly owing to the rise in automation among various sectors.

Salaries in the UAE to rise by 4.5 percent in 2020

Leave a Comment

Your email address will not be published. Required fields are marked *