Expect a salary increase this year

Survey reveals many companies in the region plan pay rises of 5% to 15%

Image Credit: Supplied
30 Gulf News

The first quarter of the year is almost over, and if you haven't heard about your annual bonus or job promotion, don't feel let down just yet because there may be something else to look forward to this year.

According to a recruitment platform, many companies in the Gulf Cooperation Council (GCC) are actually planning to give out across-the-board pay increases of between five and 15 per cent this year.

Those planning the increments are in various industries including oil and gas, construction and engineering, automotive and business process outsourcing.


The latest Hiring Outlook Survey by Naukrigulf.com, which surveyed the human resources heads of 60 companies in the Gulf, showed that nearly half (49 per cent) of the employers will grant five to ten per cent salary adjustments in 2012.

About 20 per cent confirmed plans to grant increments ranging between ten and 15 per cent. A small portion, 13 per cent, said they will increase their staff wages by less than five per cent.

A little over half of the companies surveyed are from the UAE, while the rest of the respondents are from Saudi Arabia (21.43 per cent) and other GCC states (23.21 per cent).

According to Naukrigulf, the planned wage adjustments are a strong indication of the general positive sentiment among employers in the region.

Boost in sentiment

"The overall economy is witnessing some boost in the sentiment primarily because of the rise in oil prices and government increasing their spends in the economy.

Also, local consumer demand is on a continuous increase," Tarun Aggarwal, business head of Naukrigulf.com, told Gulf News.

Given the positive mood among employers, it appears that there are more companies who have decided to be more generous this year. In 2011, only 38 per cent of the recruiters announced plans to grant pay increments within the range of five and ten per cent, while 15 per cent said the salary hikes would be less than five per cent.

Hiring scenario appears to be good

The hiring scenario in the first half of 2012 also looks positive, with 77 per cent of the recruiters across the GCC planning to offer new jobs over the next few months.

Tarun Aggarwal of Naukrigulf.com said they expect increased hiring from oil and gas, construction and engineering, IT and telecom and retail sectors.

Most of the companies (53 per cent) expect hiring increase in the four to eight-year experience bracket, while only a few (16 per cent) will be looking for applicants with more than 15 years experience.

Although seven per cent of the recruiters anticipated some layoffs and seven per cent said there will be no hiring, Aggarwal said the overall recruitment scene looks promising.

"The region is witnessing a positive hiring environment, especially in the UAE, Saudi Arabia and Qatar. This may not be the best time for hiring activity, but the sentiment is optimistic and most companies will be increasing their headcount over the next six months," he said.



  • Razeen

    10-Mar-2012 16:05

    i am scard that with this article my grocery man going to increase the price for me

  • Pankaj

    10-Mar-2012 15:24

    Yes so very right .my mother is a teacher and is working since last 7 years and still gets gets 3900Aed and my college fees is approx 3000Aed. and my younger brother has to pay 15oo as his school fees.Its a strain for my parents to meet ends at times.Salary for teachers should increase as that will improve the standard of living and help us to save- the main reason why we have left our homeland.Teachers are our guide and facilitators and we are what we are because of them.

  • Sana

    10-Mar-2012 14:07

    The salary should be increase for school teachers. And it is a must when they raised the school fee. A teacher will be giving their best when they are paid well. 4000dh is nothing to afford a family here. A teacher is building a generation. If he is in pathetic condition what can you expect? My husband is a teacher and he is on a part time job after school because its not possible to just depend on the salary.

  • Haider

    10-Mar-2012 13:55

    With Schools fees increased by upto 30% and commodities rising every week .. even a 25% rise is salaries (if any) is not enough. Standard of living in many countries are improving and has detoriated in the UAE. You may still enjoy an amazing life-style only at the expense of reduced savings.

  • Mathew Litty

    10-Mar-2012 13:38

    I have read these highlights even before and this is not some thing new. Thanks for the motivation though , lets see how things work . The Situation right now in some of the company's is worse and some sectors are a bit tight. when i was in my previous company that used to give me a headache i was having a feeling whether i would be asked to leave one fine day as there is no job security. Companys still don't have the salary to pay for their employees so where is the salary hike going to come up? You need to be lucky enough to work in a company that supports you , takes care of you and motivates you. Ask any one out here who is happy with their job? Ask any one whether there is a job security and whether they get a salary hike. I worked in my previous company for 4 years and all what i got was an increment of AED 100 every year. that's it??????? Taking the cost of living and the standard of living into consideration all of us are desperate for money and with out money you cant survive. If company's dont have good business and don't meet customer demands and expectations, where will the money come from? The reason why employees shift from one company to another is due to lack of rewards , bonus, benefits and poor salary package that hardly increase which is why i decided to make a move to a new company that is far better than my previous company. Employees will look for better prospects if the company does not pay them well but will force them to stay back putting in those extra hours to do their donkeys job just to finish the job. I for sure, would not like to work for a company that pays you "peanuts" in spite of all the hard work and efforts. For those who are working in huge multi national company's and govt company's are lucky enough. You work or else leave is the tendency in most of the organizations. In order to pay your employees more, do hire staff that have the mentality and the interest to work so that they are loyal to the customer and go that extra mile of getting in business rather than paying staff who don't work but instead simply come to the office, walk around drinking tea and coffee, smoking every hour, taking part in "office politics".

  • ARSH

    10-Mar-2012 13:19

    There is not true, last one year i hear that salary will increase in uae all things are very expensive I have family also here i am in tension my salary is not too much my children also in school its very tough for me i wish that inshallah the salary will increase ameen

  • Sarah

    10-Mar-2012 13:18

    it is not true, some companies are not giving even the salaries on time

  • Kumar

    10-Mar-2012 13:05

    these recruitment agencies are adding oil to the fire. many companies here are struggling for survival. gulf news gave another article like this last week which also didn't make any sense.

  • Onorita

    10-Mar-2012 13:01

    This is GREAT news..but i have query, for 3 years I dont have increment and this year I got only AED 44 which is 1% of my gross income... Honestly I was so upset and now I'm trying to look for a better replacement..Thank you..

  • saqib

    10-Mar-2012 12:54

    salary increase WHAT A JOKE......

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