Dubai: Employees in the UAE are in line for a 4.8 per cent pay rise next year, according to United States-based human resources firm, Aon Hewitt.

The figure, released as part of the firm’s annual global salary increase survey, is higher than this year’s average salary increase of 4.6 per cent in the UAE. However, it is lower than forecasts by UAE companies for 2014 and 2013, which was 5.1 per cent and 5 per cent salary growth, respectively.

Aon Hewitt, in a statement on Sunday announcing the figure, said the 2015 forecast suggests UAE companies are being more conservative with their budgets going forward. It, however, did not say why. As of June, the UAE’s inflation rate was 1.2 per cent, according to the National Bureau of Statistics (NBS).

“It is normal procedure for companies to rethink their salary projections on an annual basis and the latest figure shouldn’t be a cause for concern for employees,” stated Robert Richter, compensation survey manager at Aon Hewitt Middle East.

The 2015 figure is based on data analysed from 177 organisations in the UAE, which were part of a wider Middle East group of 500 companies that were also surveyed, according to Aon Hewitt.

The UAE estimate figure is lower than the six nation Gulf Cooperation Council (GCC) average salary increase forecast of 5.1 per cent for 2015. Companies across the GCC predicted a 5.5 per cent increase in 2014, lower than the actual increase of 4.9 per cent, according to Aon Hewitt.

A lower than 2014 forecast for next year means companies across the Gulf, like the UAE, are taking a conservative approach to pay rises, Aon Hewitt said.

Oman and Saudi Arabia each gave the highest salary predictions for 2015, each at 5.4 per cent. Surveyed companies from Kuwait expect a 5.3 per cent salary increase next year, while Qatar companies have forecast a 5.2 per cent increase and Bahrain a 4.5 per cent increase.

“The latest figures show that corporates continue to show confidence in the 2015 economic outlook despite the slightly lower predictions made for the year ahead,” Richter stated.

All six GCC nations have forecast a lower salary increase for employees next year than they did in 2014.

“Final budgets will be determined by HR and the management team of a company and the numbers we receive are the projections made by HR only; it seems this year HR will be more in line with the final numbers,” Richter stated.