(MENAFNEditorial) Saudi Arabia and UAE 2017 salary increases highest in the region
Aon's
annual salary increase survey shows Saudi Arabia leading the way with 4.4%
salary increase, followed closely by 4.3% in UAE and Kuwait, and 4.2% in Qatar Highest
salary increases across the region come from the Life Sciences (5.1%) and
Hi-Tech (4.6%) sectors Saudi
Arabia, Kuwait, and Qatar have the highest salary increase projections for
2018, at an optimistic 4.5%
Dubai,
UAE - - 11 September 2017 - Saudi Arabia
continues to lead the region in salary increases, according to a GCC-wide
survey of 600 multi-national companies and locally-owned conglomerates by Aon, a
leading global professional services firm providing a broad range of risk,
retirement, and health solutions.
The largest study of its kind in
the Gulf region showed that, just as in 2016, actual salary increases remain
lower than forecasted, influenced largely by a slow economy and low oil prices.
The region-wide VAT, a tax on consumption, of 5% to be implemented in January
2018 is expected to help improve GDP growth; however, it will add to the rising
inflation in the region, leading to cost pressures. While employers choose to remain conservative in the
projected salary increase of 2018, we may witness an upside in the actual
salary increase, thanks to an improving economic situation as a result of
increased government spending, stabilized oil prices, and the effects of
economic transformation programs.
Including zeros and paycuts
Country 2017 Projected %
2017 Actual % 2018 Projected %
Saudi Arabia 4.9
4.4 4.5
Kuwait 4.8
4.3 4.5
UAE 4.6
4.3 4.3
Qatar 4.5
4.2 4.5
Bahrain 4.7
3.9 4.0
Oman 4.6
3.9 4.3
Actual salary increases this year
are highest for the Life Sciences (5.1%) and Hi-Tech sectors (4.6%), while the Construction/Engineering
and Transportation/Logistics/Shipping Services sectors
suffered the lowest salary increases at an average of just 2.4%. This is similar to last year, where Life Sciences was
also a highest paid sector (together with Consumer Products) and
Construction/Engineering experienced the lowest salary increase (together with
the Energy sector).
Robert Richter, GCC Compensation Survey Manager, Aon Hewitt Middle East,
said: "Despite lower than projected salary increases this year, there is
optimism in the region over KSA Vision 2030 and Expo 2020--with the potential for thriving new industries and a
significant level of job creation in the region as a whole. With the stabilisation of oil prices, we can also
expect the economy to stabilise and strengthen in the coming years."
About Aon's Salary Increase
Survey
Aon has been conducting the
salary increase survey on an annual basis across the globe for 30 years, and
launched it in the Middle East for the first time in 2012. The report is free
to participating organizations and available at a price of US$1,000 to others.
The survey is part of Aon Hewitt's suite of evidence-based, research-led
studies including Qudurat, Best Employers Middle East (BEME), Total
Compensation Measurement (TCM™), and Top Companies for Leaders.
About Aon
Aon plc (NYSE: AON) is
a leading global professional services firm providing a broad range of risk,
retirement and health solutions. Our 50,000 colleagues in 120 countries empower
results for clients by using proprietary data and analytics to deliver insights
that reduce volatility and improve performance.
For further information
on our capabilities and to learn how we empower results for clients, please
visit
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