UAE companies are predicting an average salary increase of 4.8% next year, according to the research by management consultancy firm Aon Hewitt.
The figure is slightly down from forecasts made in 2014 and 2013, which were 5.1% and 5% respectively, indicating that companies across the UAE are being slightly more conservative with their payroll budgets.
However, employees in the UAE were given an average salary increase of 4.6% in 2014, only slightly below the original projection of 5%.
Released as part of its annual Global Salary Increase Survey 2014, the figures are based on data from a robust comparative group of over 500 organisations across the Middle East, including 177 in the UAE.
The report offers a unique snapshot of salary increase trends which enable organisations to benchmark their forecasts with the market in order to remain competitive.
Across the GCC, companies are predicting an average salary increase of 5.1% for 2015, a figure slightly down from predictions made for 2014, which was set at 5.5%, indicating a similar approach has been taken across the region.
Among the participating GCC organisations, Oman and Saudi based companies gave the highest salary increase projection for 2015 at 5.4% each; a slight decrease from the 2014 predictions. According to the research firm Capital Economics, inflation in Saudi Arabia is likely to remain steady at around 3.5-4% over the coming years, as growth weakens in comparison to the past decade.
According to the National Centre for Statistics and Information (NCSI), inflation in Oman has remained subdued in the first quarter of 2014, despite a rise in consumer spending.
Bahrain gave the lowest salary increase projection at 4.5%, followed by Qatar at 5.2% and Kuwait at 5.3%.
